I think it died when everybody started to spray, spray, spray.
Above all, in the puritan american culture, perfume in general has always been viewed as a sinful pleasure and even more as a gesture of applying it splash.
Perfume permeated in the USA on a wider scale through bath oils, specially thanks to Estee Lauder famous Youth Dew, connecting it to an higienic ritual.
This of course allowed the perfume to be "purified" from its sins but also pushed the need to connect it to a "cleaner", less contaminating gesture as the spray.
Pure perfumes used to still remain splash only for a couple of decades more but the spray mania was not meant to fit so well with the tiny amount of pure perfume it's enough to wear. So pure perfume started to fade out of fashion and what was since the beginning an elitary pleasure, became even more elitary at the point some houses decided it wasn't convenient producing it anymore. So sad.
It would be really good if people could rediscover the gesture, the magic of few drops of pure perfume purred on their fingers or applied with a glass stopper.