The only thing anyone lost on launch day was time. It was unfortunate, but not the end of the world. The number of coins generated in the first few hours were small because of the block reward algorithm being used with Syncoin. Effectively, the more people that mine, the higher the block reward will increase. There was no "millions of coins" generated in the first few hours like there are with other cryptocurrencies, which, to me, makes this an interesting prospect.
I've been happily mining the last few days without trouble and have amassed a few hundred with a hashrate <1MH. As far as I'm concerned, everything is humming along quite nicely. What will be interested to see is the longevity and long-term value of the coin. The more exchanges that put it on their list (including exchanges like Cryptsy, etc), the more it'll help the coin grow. At the same time, those interested in the coin need to help grow the community. So no, the coin is not dead, it isn't on life support, it is progressing steadily and only time will really tell.