Personally i think Reseller hosting is here to stay for quite a while yet. There are still a lot of people on the internet who want to "make a quick buck" by reselling hosting.
In my opinion, resellers help 2 people. The main provider as well as the purchaser. Cheaper hosting is great for people who don't need a lot of special features and just want to host their personal webpage and that is exactly what is offered by resellers. Because resellers are still making some money I don't forsee them going away, nor do i expect hosting companies to stop selling reseller accounts for precisely the same reason.