Chopin's piano maker, Pleyel, is closing up shop due to competition from China, but other makers are fighting the good fight - read about it here.
In essence, the free market seems to be working. The the global "supply and demand" with many different items out there is beginning to take a toll on one of the most unique industries in the world.
China is the growing market, with manufacturers and and a culture that is growing and is now the new center for piano making.
While it may be considered a sad state, I simply find it nostalgic and special. There will always be pianos, and there will always be someone who can and does tickle the ivories, just not as many as there used to be.
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