Interesting question for sure. I don't think albums are dead, of course not, but I think that artists need to release albums as an album, not a collection of singles. That's the biggest thing I've seen over the past while - it's just singles smashed together, that's why you see artists say, "I have a bit of everything on here for everyone". Because it's not really an album at all.
An album should be a concept, or an entire set of music that the artist recorded within a certain amount of time. I believe they should lock themselves in the studio for 2 weeks and boom - that's the album. If they were to stop all the singles releases and "mixtapes", then they'd end up with something special.
Just releasing singles will backfire because the fans will be too quick to dismiss it. Everyone today has short attention spans to begin with, so releasing singles just feeds that even more.