When cars first came out, the only transmission available was a manual transmission. Even when automatic transmissions came out, standards were the better option because they were much more reliable. These days, it looks like automatics are much more reliable.
There are a few reasons why manual transmissions are dying:
Reliability: The standard transmissions built today are very cheaply made compared to the automatic transmissions. If you push a manual transmission to the edge, either the clutch or the transmission itself will break. The costs to fix these broken parts are quite costly. Of course, why would you buy a standard and not push it to the limit?
Cost: Back in the day, manual transmissions were extremely cheap. Now, due to the rarity of standards, the cost to build a manual transmission is very expensive. Then there's the clutch. In order to be more reliable, the clutches are built using stronger materials in order to handle the high revs and the extra power. This makes clutches more expensive.
There are two things where a manual would be better than an automatic; drag races and going through tunnels. The only reason why manuals are better than automatics is if you're going really fast in a straight line. In order to get the most power, you need to rev the engine to it's redline. Also, if you're going through a tunnel, nothing's better than downshifting when you enter and hearing the noise of the engine as you barrel through a tunnel at fast speeds.
Todays automatics are so computerized and sophisticated, you can program the transmission to shift quickly, smoothly, and even hold a certain gear until you get around a corner. Most automatic transmissions can shift faster than the blink of an eye. No person can shift as fast as today's automatic transmissions. You can even switch the transmission so you can shift gears yourself without a clutch. Many car makers, including Aston Martin and Porsche, are slowly fading out manual transmissons and only selling cars with automatic and automated manual transmissions. This is mainly due to the fact that it can shift faster than any person, leading to a faster performance. It may not be long until manual transmissions are an extinct species.