If I remember right, you get the story mode F2P, but I don't think all the classes are open unless you had the class before it went F2P. The limitations are on the number of PvP, space and dungeons you can do. And it's pretty brutal on the restrictions. Kinda a community killer.
Subscription MMOs are pretty much dead, WoW, Rift and EVE might be the only 3. I see Buy to Play, ala GW2 becoming a more common option in the future.
Subscriptions MMO's aren't dead its just that there is more competition. Plus the people who play MMO's in North America isn't growing like in Asia. WoW still has 6+ million of subs. Most of those are in Asia though.
The games are not dead, they are just all going F2P. Of the ones released in the last couple of years, Rift is I think the only one that has not gone F2P, or Buy to Play. WoW and EVE go back more years than that, and have a large installed base that isnt going anywhere.
The business model is changing, the games are relying more on microtransactions than the standard sub charge. Its debatable if this is good for games or not.
The reason why most of the new games fail is because they focus too much on graphics and not enough on story or gameplay.
Not in my opinion, with regard to MMO's anyway. Its mainly there are so many options. People buy the game, play it for a bit, often max out the levels, and move on. Fewer people are willing to get on the 'gear treadmill' that makes up the 'endgame' of MMO's.
SWoTR is a perfect example actually. Very story driven, and the gameplay was good too. But after many people, myself included, got through the story, I felt little reason to keep playing. Especially at $15 a month.