I hear a call for a new features list, so here goes :

In general : the nepomuk framework ditched strigi for indexing, and has a new plugin-based system. Ultimately removing all strigi related problems (like reading entire .avi files). Continuing with nepomuk, akonadi nepomuk feeders have also been reworked (will be available in rc2).
KDEPIM : kmail got backup functionality, other optimizations. Akregator is on its way to be rewritten using akonadi.
Plasma has even more parts in QML (namely notifications).
More activity enabled applications (gwenview comes to mind). Speaking of gwenview, it got color management enabled (this is coming to kwin).
Okular got tile-based rendering.
A very nice addition is the passive notification system in kate (propagated into kdevelop and other apps).
KTouch (the edu application to learn touch-typing) is a completely new app.
The games library got a big cleanup.
Not sure if it got merged into master, but there is a new kioslave for the MTP protocol.

more info in the official feature plan

KDE is not dead, far from it. I personnaly love it, and am quite unable to easily use anything else than my heavily tweaked setup.

@funkSTAR : chill dude, you got your point across:you hate kde. You are entirely within your rights, just don't make our forum experience miserbable.