There's been plenty of evidence that they aren't dead, to the point that it really shouldn't be a question anymore. Those guys working for Penny picking up the electromagnetic event at the end of the second season being the most obvious one. Then there's the fact that the Others have communicated with people in the outside world quite recently, and even made trips off the island, such as Ethan recruiting Juliette. If they were all dead on that island then he couldn't have left to get her, and if she were dead before she were recruited, it'd make all of their flashbacks pretty pointless since none of it would have really happened.
Some wierd stuff certainly happens on that island, but they're not dead.






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