In Brotherhood and Revelations, the characters lost their 'history' as their assassins, and the mode was cut. AC3 was supposed to have a mode where the NPCs discussed the pasts of the assassins, but the cut was before that was implemented. Black Flag didn't have that mode, and the multiplayer mode that was left was a much more straightforward kill-match.
The AC2 and AC3 changes were more about the development of a new feature than the abandonment of the previous one. AC2 had trouble with human characters reading your actions in the environment and turning against you, so they created an AI that could only understand an AI's actions, so you could play a character without worrying about the other human characters and NPCs. Black Flag was the first multiplayer game to feature a true online mode. The multiplayer mode also had to be implemented in a way that didn't taint the single-player experience. So, with that in mind, what you're seeing in Brotherhood and Revelations is one of the new features they had to introduce to the game. The multiplayer mode was cut again in the third game. AC: Brotherhood and Revelations both have online multiplayer modes, and AC3 has a co-op mode. Black Flag's multiplayer mode is still a work in progress, but the game itself was a success and it's multiplayer mode is the furthest along.
So, no, you're not seeing the 'demise' of the mode at all. The mode was cut once, as a result of that feature having problems. AC: Brotherhood and Revelations have online multiplayer modes; AC3 has a co-op mode. Black Flag's multiplayer mode is a work in progress, but the game itself is a success and it's multiplayer mode is the furthest along. You may be seeing the developers trying to fit the mode into the game they have now, rather than the mode being exactly what they wanted when they made the game in the first place.
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