No, it didn't die. Microsoft sued the company for breach of trademark, lost the suit, then paid the company $24 million to change the name to Linspire:
http://en.wikipedia.org/wiki/Microsoft_vs._Lindows
Linspire still exists and appears to be flourishing but it is just the OS; you have to buy the box elsewhere.
[WS:] Thanks for this info. However, despite winning that lawsuit Lindows/Linspire did not make any inroads into the PC market. I really do not understand the global dominance of M$ in that market. Its cartel position may explain its dominance of the US market, but why does the rest of the world is using the overpriced and inferior M$ products instead of superior and much cheaper locally developed ones? India, China, or even Russia certainly have the capacity to produce alternatives. Even if cross-platform compatibility were a concern, it is not that difficult to achieve it, no?
Can someone knowledgeable about this market provide some explanations?
Wojtek