What killed Delphi was the mismanagement at Borland.
The changes of the languages division between Borland, Imprise, Borland again, Embarcadero and finally Codegear, made many business move away from Delphi.
In the enterprise world, many of the former Delphi users have moved into Java or .NET worlds. There are quite a few Delphi users in Europe though. Germany is quite a strong country in Delphi usage, enough to still have Delphi articles in computer magazines.
As a former Turbo Pascal fan, I find sad that Delphi usage has decayed. The language is quite good, at the same level of C and C++ (minus metaprogramming), with better type safety and native code compilers available.
Not to mention the fact that Pascal/Delphi compilers are usually so much faster than C++ compilers. I never used Delphi much, but I can clearly see its appeal.
... and VB and the (shift to the) Internet.
You can do web development in Delphi.