brilliant post, markl. it does put things into perspective, especially for the youth (counter)culture of the time.
here's my take on it (and i'll make it short and sweet because i'm sleepy
), but things like the music industry evolve. it may be true that Grunge died with Kurt Cobain and Layne Staley, or even because of Weiland's troubles or Vedder's reluctance to the spotlight. Grunge bands were already hard to work with already, and i'm not sure if a lot of the bands wanted to remain popular in the public eye.
also, i also think the media has a part in killing off Grunge. when Grunge came about, it opened the floodgates to all things Alternative at the time, and then everyone and everything used that term as a buzzword until Alternative became mainstream... it had no meaning anymore. the term "opened the floodgates" also reflected the attitudes of the record companies as they went on a scramble to sign anyone (with talent or not) that were deemed "Alternative" and decided to mold these artists in their own understanding of the term. that also killed Grunge and Alternative.
lastly, i remember the industry doing a full 180 degree turn (as markl remembers it). perhaps the music industry decided that people had enough of all this angsty negativity rock and pushed somehting that's easily accessible, pop, image conscious, and bubblegum; and perhaps the public agreed, but whatever it was the industry did so well at this 180 degree turn, i remembered the newer generation of music buying public lapped it up.
so yeah, there's a lot of variables to why Grunge didn't last. but then if you see it as a movement; or worse, a fad (remember when high fashion had Grungy inspired clothing?), these things come to an end, as all things do.
with how the industry operates today, they seem to have a very firm hand on what's being released right now, so an explosion like Grunge is very unlikely to happen in such a static environment. it'll be interesting to see what does happen in the near future.