Yes indeed, prog is still very much going, with many great bands offering a wealth of odd time signatures, strange lyrics, and lengthy guitar/moog solos. Very passionate following. But generally not trendy enough for the mainstream audience and few prog bands can make a living just by playing these days. Marilion are one of the exceptions.
I also like the more melodic neo-prog sound best (there are loads of sub-genres) and know the Welsh band Magenta quite well. Rob's (keys and composer) day job is a director of music for Welsh TV, Chris (lead guitar) is a London Royal college of Music Licentiate trained classical guitar teacher, and Christina (The Princess of Prog) works for the NHS. Here's them playing live some years ago at the Point in Cardiff. Beautiful guitar solo by Chris, who recently won the Classic Rock Society "Best Guitarist" award for the second time, pipping a certain Mr. Hackett into second place. Do like this tune. Reminds me a bit of Khachaturian's Spartacus. There are I think a few musos on the forum who will know the type of guitar Chris uses (Custom PRS?). Regrettably the Point venue no longer exists. Some new flats were built close by and the tenants had second thoughts deciding they didn't want a live rock venue there. A great loss to local live music.
http://www.youtube.com/watch?v=sizoFXGqODsI posted this vid a while back of a Magenta studio cover of well-known prog tune. Went down rather well, even with the ultra hard-core Yes fans. The band's original material is unashamedly influenced by Yes (and Genesis).
http://www.youtube.com/watch?v=o2EeF59ObeEI have that album in my collection somewhere Goncalo. Classic.
Prog fans do like their curry! Especially late on after going to a live gig.
Rob