darkSpyro

Please use spoilers, please. Some of us don't have this game yet, thanks.
As for your question; Yes. Ignitus dies and is given the new title as the present Chronichler. The Chronichler, therefore, leaves mysteriously into a book, believed by I, to be the Book of the Dead in search of Spyro. As for our hero's, Spyro and Cynder, some users say that they have lived on, for a final cutscene is shown as a bit of foreshadowing perhaps. Where as others say they have perished at Malefor's lair, being crushed by it's falling mass, and live on in nature, as Ignitus did.
Personally, I, believe they have perished and have lived on in the world differently. Afterall Ignitus says "when a dragon dies they do not truly leave this world." It might be that in the next game they will be revived from the dead to once again fight evil. To tell you the truth, I hope I am wrong. It seems to dark for Spyro, and a tad disturbing for younger players. But then again, they may be creating the next series for older people alike.

malefore died.and ignitus died.but he became the new chronicler.when ignitus looks into the christal on his robes,you see that he has found a trace of spyro and cynder both.they are just flying about and playing.here is the video....http://www.youtube.com/watch?v=5Vy5q0RfrrM