I think both the auto-industry and death of capitalism arguments are flawed. The auto-industry in America died because the auto-industry was run by a bunch of f-ing retards who couldn't see the blatant writing on the wall, that Americans wanted cheaper better made and more reliable cars that were more environmentally friendly. They also didn't need 300 models from 15 different divisions. Toyota, Kia, Honda are doing just fine, GM and Chrysler (and their unions) killed themselves.
But death of big law as the death of capitalism is way off base. It will be the thriving of capitalism that will be the death of biglaw. Corporations will start to question why they need multi-million dollar legal bills then they can source the same legal issues to firms that charge less hourly (or better yet on a per-incident basis), and even look at ways to cut costs by outsourcing work that doesn't necessarily need an ABA lawyer to perform (like document review) and ship it over to India where they will be happy to review as many documents as you're willing to give them for 1/10th the cost of T2 J.D. Further, (and this is a personal pipe dream) I'd like to see shareholders revolt against the companies they own and question why these companies retain biglaw firms that charge 3 or 4 times as much as a smaller boutique firms, especially in times of economic trouble when those costs can be cut.
Is biglaw dead? No. However it's going to be getting older, and maturing, and it won't be the economically fertile young man it used to be.