Seems to be some confusion over what shoegaze is. Here's a hint: if the band is jumping around the stage, rocking out, it ain't shoegaze. Essential characteristics of shoegaze are introversion (those child-like voices) and transcendent noise (but without the orientalism or overt druginess of psychedelia). Jesus & Mary Chain were a vital influence, but I'd say they precede the distinct genre. Going back, you could also include the Velvet Underground.
There is indeed an ongoing scene, though I haven't followed it as I mostly listen to classical now. I recall an Australia band called Sounds Like Sunset who were good live and had a decent first album (long out of print).
My favourite group is Lush, thought they only really fit this genre in some of the early EPs (see Gala compilation) and first album Spooky (if you only wanted one shoegaze album I would say this is THE ONE to get). There is talk that 4ad will reissue their albums remastered and with extras, but nothing has emerged yet.
Slowdive get hyped but I felt they went downhill after the first three EPs. I blame the drugs, frankly. Anyway, those EPs come on the bonus CD of the first album (2 disc version), except song "Catch the breeze' has been moved over to the album.
For metal fans, an interesting listen would be Katatonia's 2nd album Brave Murder Day. Musically it's obviously very influenced by those early Slowdive EPs, but with death-style vocals by Mikael Akerfeldt from Opeth. Sadly the CD version I have seems to be from the unmodified vinyl master, so I have to turn the treble way down to compensate.