Well, God is not dead, but neither is he particularly alive as we know it.
The deeper question is: "What does it mean to be alive?" Psychologists, biologists and computer programmers debate this question. (Philosophers debate a similar question: "What does it mean to exist?") Unfortunately, they're not very successful at coming up with a useful answer.
Psychologists might say that you need a certain degree of self-awareness to be alive, biologists might say that something is alive if it can move and reproduce as a species, while programmers who deal with artificial intelligence might say that giving a deep illusion of being alive is what makes one alive. All these viewpoints can be insightful, but in the end what it boils down to is: "Something is alive if it's like me."
Everything is God. In this sense, God is alive, and through the oneness of God the whole world is alive. Being alive or not is a concept that makes sense in everyday human life, but does not really apply to God as God is well beyond these human concepts.
God is not a single person - he is all of humanity. He's not bound by time either, so it makes no sense for God to die. In a way, God is the only one truly alive, because compared to God, we are just sleepwalking through life with slumbering consciousness.
The breath of life goes both ways: in and out. We are alive through God and God is alive through us!