It isn't that compacts are dead, it is that Canon doesnt know (yet) how to MAKE a compact. There IS A MARKET, look at the zeiss zx1, the Leica q1/q2, and the Sony RX1/RX1R/RX1Rm2, as well as the apsc Ricoh gIII, and about the 7 models of 1" RX100's.
I did happily spend $800 on a g5 once, back when I still bought Canon gear long before the R crapfest, and I loved the fugly design of it, and while I will likely look at the specs of a g5m2, it will probably the same turd my g5 was, designed for soccer moms and millenials. The g5 had potential, but Canon ruined it like they do everything else, with crippled features and market segmentation, and video-feature pandering. It shot RAW, with a 1fps burst. 1! So I could take 1 RAW shot and the buffer hung for about 20 seconds. By that time, the scene on the street was over. Also, I had no B/W shooting, no picture style, no shooting with a digital orange filter. Also, the lens itself didn't even have threads to put my own filters on it. And Canon claims the g5 is aimed at "enthusiasts." Yeah, right. I sold mine, bought a rx1Rm2, and I love it.
I can't even say the last time I bought Canon gear and loved it, but probably 2009? The 100mm IS L, which I pre-ordered and got on its release day. That was the last Canon item I bought I loved. Long ago.
Now I just find myself waiting for the equivalent of the 1987 EOS revolution that put every other camera maker 30 years behind. I know Canon can do it again.