I haven't given up hope... but I also don't have the investment in hardware that others do. I purchased a 4.5GH/s miner (Think it was a Jalapeno, could be wrong) back in March, and it is supposed to be shipped in June... but I'm past the point of really caring, so honestly if it shows up by Christmas, I'll be happy.
My money (literally) is on Litecoin, but I think both Bitcoin and Litecoin will survive. Honestly, though, I though Namecoin was an intersting idea, though I never bought in--and then it pretty much went belly-up. Still thought it was a neat idea to base the currency on something semi-substantial, like domain-squatting.