I don't know if anyone knows the answer. Mozilla doesn't like the dependence upon SQLite and has decided to go a different way. However, all WebKit based browsers already have it implemented and I don't see them removing it as any websites built to take advantage of the spec would be broken.
This means that at least in certain contexts, mostly within the mobile sphere where most browsers have a webkit implementation, it can still makes sense to use the HTML5 Web SQL spec. I see this as especially true for developers who are looking to create mobile applications using a framework like phonegap.
There are some times where as an application developer you want to provide users with access to data even if they aren't connected to the internet or if the connection is slow and some types of data is just more efficiently stored in a database than in a cookie or JSON cashe. For example, if you have data that has relationships it is much easier and quicker to do a join query to pull the data you need than it is to search a json map.
I don't think the spec is dead, and I actually hope that Mozilla will reverse their stance so that developers can use it to solve problems outside of the mobile webkit world.