I wasn't aware of anyone saying it was dead, but the narrative has shifted over time from "work on whatever you want one day a week" to "your team might let you spend up to one day a week working on something of your choosing if it's in the interest of the company". I'm not at Google, and never have been, but it's almost certainly the case that the narrative has changed - whether or not there was ever a change in policy.
I don't think things have changed that much, only Google grew so big that 20% projects became a potential damper on your career (the incentives of perf and promo and all that horrible stuff). But the freedom has always technically been there.
I am a tech lead and find it surprising that 20% projects could damper your career, perf & promo etc. Where I work, a well-executed 20% project is seen as very positive during the perf review. In fact, doing zero 20% projects for a long period of time could actually damper your career.
But if nothing came of the 20% work, you could've done 25% more on the core job, doing positive performance things there. I'm pretty sure that's what's meant about it being a career dampener, not that it wouldn't be great to hit on something fantastic and accepted as a new core product with thousands working on it full-time. (IANAG.)
Everything is obvious in the hindsight. 20% projects carry a risk, failing one or more 20% is fine. Failing many is seen as lack of judgment and does dampen your career eventually. My point was that, with reasonable judgment, an engineer can get good stuff done with a 20% project. Also, not every 20% project needs to become a fantastic new core product to be considered a success.
Also implies a widely varying experience with the program; levels of promotion politics must vary across the company, and levels of recognition for anyone's particular project must also vary.
> the narrative has shifted over time from "work on whatever you want one day a week"
This was never the narrative, except maybe when the company was a few hundred people. The project has to have a relevance to the company, just not to your primary project. Most 20% has always been chipping in on a team whose problem space interests you and that you might want to transition to. That's definitely what it has been for me.