I love revolvers and have no issue at all with carrying one. But I do readily admit that my primary carry is a Commander sized 1911. By current thinking, I'm under gunned with that too as I only have 8 rounds.
However, more and more as I get older, I find myself carrying My S&W 642. Its just easier. Especially when headed out for quick trips such as the store and then right back home.
Capacity does seem to be the driving force behind the decline of the revolver. As Shibadog pointed out, current thinking demands a dozen or more rounds. I don't happen to agree.
Another thing that I think hurts the revolver is that too many people buy the wrong revolver. How many times has a newbie, especially a woman, walked into a gun store looking for their first gun, possibly a carry gun, only to have a clerk push a small frame, 5 shot .38 revolver on them? These small frame revolvers are quite popular for carry. Like I said, I often carry my 642 myself. But its completely wrong for a beginner. The small gun is awkward to handle and recoil is downright nasty. No, these guns are much better suited for experienced shooters. They take time and skill to master. Certainly not suited for the once in a while beginner.
Personally, I think a 2 or 3" medium frame revolver in either .38 or .357 is both the perfect carry revolver and ideal for the new shooter. Big and heavy enough to shoot well, yet still small and light enough for easy carry. My own favorite snubby is the old Colt Detective Special. Slightly smaller that a S&W K-frame, but still 6 shots and it shoots extremely well.

Another issue is revolvers in the wrong caliber. Remember when Dirty harry came out? You couldn't find a .44 magnum of any kind any where. They were in such high demand. But then a year or so latter, .44s with only a few rounds through them started popping up on the used market. You know why.
And now we have the current trend of small frame .357 Magnums. AW, HELL NO! I want no part of that.

I believe that the various .32 caliber revolvers are the most overlooked defensive handguns on the market today.
I'm quite fond of the non-magnum big bores. .44 Special and .45 Colt. Both are well known manstoppers and capable of taking any game in North America with very manageable recoil.
The right revolver in the right caliber is still as viable as a defense gun as it ever was. Its public opinion that has changed. And not for the better.