The original notion of the US, as an association of sovereign states and a limited federal government, certainly died. Read the anti-federalist papers.
That is only one interpretation of the founding however. You could also argue that vision died with the Articles of Confederation or the Whiskey Rebellion
Or even Shays' Rebellion. The utopianism of the Anti-Federalists faded pretty quickly once it went up against the realities of running a newborn country.