Yes XMPP still exists but I'd argue compared to previously standard XMPP is no longer as widely spread. Where as previously you would have people talking to each other over different XMPP services, that kind of federation no longer exists. For example WhatsApp supports XMPP but good luck trying to talk to WhatsApp from another client.
In Microsoft's case I agree. However Google successfully used EEE to essentially kill of XMPP where they initially added XMPP support to Google Talk, then extended it with their own features which weren't up to spec, and then later killed off XMPP support.