No, not really. Or, not precisely. It shifted all over the place, but it's still around. Alyson used to publish more of the literary type stuff, along with a couple of other smaller houses that did go away -- Knight's something or other and GMP, among others. Then many of the smaller presses just went away, and Alyson got bought (and bought and bought), and shifted its focus for a long time; it seemed that it wasn't publishing anything but porn, and while that's still a huge part of its catalog, other types of books seem to be coming back. A fair amount of gay book publishing in this country seems to have been picked up by Kensington. That said, the bulk of gay publishing generally does seem to have been mainstreamed into the big presses.

Gay Romance publishing specifically went through some weird changes. There was only ever the odd book, usually with a romantic plot that was nevertheless not actually called a romance, until the Romentics line came out initially, back in the 1990s sometime. It demonstrated that there was actually a reasonable market for that sort of thing, got picked up for distribution by Warner Books, and promptly disappeared for a long time. (It seems to be back again, sort of (http://romentics.com/non_flash/romentics.html), with the same people who initially founded the line.) Then the whole field, as a coherent marketing sort of thing, disappeared again, and only recently made a reappearance, this time as books largely aimed at women. (Cleis is an exception to this; their gay romances actually are aimed at gay men; it's just that women happen to be buying them too.)

Um ... which was all probably more than you wanted to know about that. Sorry. There was an entry I was doing to do on all this that got eaten by the great kerfluffle over the Lambda Literary Awards. It would have been really savagely misinterpreted, so I decided to let it go, but it seems to have been bubbling under here and there.