It would be death only if Google was, but I don't see that happening, at least not in this millennium. (=
That's an important element that a lot of people still overlook - the lifetime value of a ppc customer. Once you know what it is it opens a lot of opportunities that may not have seemed practical before.
Yeah, its not dead, its just harder than it used to be. And you can direct link, you just have to put the hoplink is as the destination url, and the merchant's in the display url.