I think, despite BT saying that they will continue to monitor Phorm's progress before making a final decision (officially, they have not yet totally abandoned the idea of using them), the number of other obstructions put in their way, and greater public awareness of what the Weblies so called "service" is actually used for, thanks to a few bodies who the mainstream media have heard of getting involved, it is dead in the UK etc. - there might be a market for it in places like Burma.
However, the morally bankrupt avaricious scum involved in such schemes do not give up easily. Phorm will almost certainly reinvent themselves (as they did with the old 121media), some other equally obnoxious scheme will come along, and irresponsible ISPs (and others) who only see pound signs will be looking for *some* way of making money out of their customers' personal information.
Flash cookies, geolocation etc., anything that involves who you are, what you do online, or where you are, can, and undoubtedly will, fall into the wrong hands and be abused, but the world is full of people who will tick "yes" to anything if they get a free cuddly toy - the apparent demise of one lowlife company is not the end of things.