The demo scene is still alive and kicking. The following demo named "Candytron" won the 64k competition at Breakpoint '03 (a former scene gathering in Germany). Made by german demo group "Farbrausch", it is incredibly well made - nice graphics and arrangement, and, once again, a killer soundtrack.
When you are watching this, remember: The whole thing weighs in at UNDER 64.000 Bytes! You already reach 64 kbytes with one compressed mid-sized jped image. Incredible work. By the way, if you like what you see, check out Farbrausch at http://www.farb-rausch.de/ .