Why they are dying out? Because they are not that easy to source, maintain, scale or achieve super high reliability with them. Also, hard to offer a high availability option when the phone network only (well, in most cases) accepts one device per phone number.
Edito: Additionally, important to note is that most SIM cards can only be used for a prolonged time in that providers phone network. You e.g. can not buy US SIMS, ship them to the EU and host them there. T-Mobile US (and others) cut you off after (usually) 2 months of roaming.