Not dead, only sleeping.
An advantage to buying used is that you see, play and hear the thing first. You also benefit from a prestabilized level of depreciation, which you lose when buying new. An advantage to buying new is that the instrument is usually in better condition, it has a warranty, and you can get rid of it if you act reasonably quickly. Used warranties can be 30 seconds or 30 feet. So it's a choice of what works, not what is "better".
The Holdsworth production models may not be what he plays (although Carvin disputes this) but even so, what difference does it make? They're not asking $3,000 for the guitar. Price them to their competition, and they are competitive and have their own feel.
If you say, "I want a Strat," you have to keep talking before it means anything, because Fender builds a lot of different kinds of guitars with that name. Some are entry level bangers, some give you religious experiences, and most are in between. But they're all Strats.
It really comes down to whether you want one, not whether they are any good or not. They're plenty good. And doing business with quality people will mean as much or more in the long run than whether you buy new or used.
We have a good guitar shop in town. The people are what make it so, not the stock. I've had good results with MF insending stuff back. Having to do that is not a bad experience, its a good one. And I've had good mail order experiences with new and used stuff from Elderly Instruments in Michigan.
www.elderly.com You can track down a particular instrument and then call and get a salesman to get the guitar off the wall and go over it with you for twenty minutes over the phone. Then you lay down your $2K and say prayers for UPS. It really does work.