The Nexus line is definitely not dead. A report from Android Police claims that Google and Motorola are working together to create a 5.9-inch Nexus phone. Today, a separate report from The Information (registration required) confirms the previous one and provides additional details.
Android Police has spotted a new Nexus device in the Android Open Source Project (AOSP), codenamed “Shamu.” As is well known, Nexus devices are always named after fish. The Nexus 5 was called “Hammerhead,” and in 2013, the Nexus 7 was called “Razor.” Devices created before I/O were called “Molly,” which turned out to be the Android developer kit for TVs, and “Flounder,” which has yet to be revealed but is believed to be a Nexus 4:03 tablet from HTC.
