Is Malayalam a dying language

No never.

Just the same, one must realise, influence of other languages make malayalam much different from what it used to be.

Go the market place, one would never hear the word roti, for bread. Now malayalees use the word bread as if it is a malayalam word. Roti had it origins or rather came via Hindi, but is not fashionable in Malayalam.

Then there is the word keema , Malayalam had no single word for minced meat, and some how the Hindi word has been adopted. Malayalees never used to eat spinach, well the Hindi word palak is used for it, it is resident North Indians who brought spinach into Kerala markets and the word is part of Malayalam language. Spinach or palak is available in the city shops now. It is Tamil Nadu farmer who feeds kerala people and yet another north indian leafy vegetable has arrived in the kerala market. It is fenugreek leaves, no, not just leaves the whole plant has that has arrived here. The world uluvaa, used in Malayalam and Tamil is still used here, but in Ernakulam Market, Methi is understood. Popularised by North Indian customers.

Rice flour was just ari podi, there is yet another word for flour, it is mavu. Dosha mavu for example. Wheat flour was known as gothambu mavu and looks like now the hindi word atta is acceptable. Wheat flour milled and sold by Oman Flour Mills in Muscat Oman is sold as ATTA, so the word has moved to Arab countries as well. Fine wheat flour, bleached and used for biscuites, cakes and parathas, was once known as American mavu, initially this was imported from America. Now no one would know it means, maida has become acceptable name for so called refined flour.