I do think they are still making money, but perhaps in a totally different marketing perspective. Maybe they seriously dont plan to make more games, but either way I do think if they are still going its definitively (besides their erm, issues? lol) its because they are somewhat making a profit. Im not quite sure myself how does it works inside Sierra, but in bussiness it is certainly way more better for them to just publish games and not make them, you cut off time and production and such, and they just market the game already, I dont know sounds quite alright for me.
As for games hey yes, you are so right, I played Empire Earth too, and I loved it!, Im not a big fan from the old adventures myself thats maybe why it didnt crush me so much when they stopped on the adventure genre, but as it goes I do believe there is a big crowd out there that misses badly these genre, thats what nowdays fangames are all about I believe, to bring all that back to life.