Reports of his death have indeed been somewhat exaggerated.
I was reading an article in a MA magazine just the other day, wherein there was a vintage picture of the instructor on whose bio the article was based, eating dinner with Koichi Tohei. The caption of the photo referred to him as "the late Tohei Sensei"... A friend who is a longtime direct student of Tohei Sensei, and visits with him at least yearly, reports that, although wheelchair-bound these days, Tohei Sensei is indeed still very sharp.