I don't think reseller hosting will disappear. The market may become less viable for some (just like shared hosting), and reseller hosting may change - but I don't think it will go away. There will always be people who run online businesses (designers, developers, copywriters, graphic artists) whose clients may want a one-stop shop for their web presence - and those providers may not care to learn how to administer their own servers, nor have a client base large enough to afford a managed dedicated solution.

The industry will continue to see mergers - especially as the US economy slows down further, and some companies choose to shut their doors. A few years after that, or whenever the economy begins to spring back, resellers may make a resurgence. It's all a pendulum.