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No, it's not the end of the line for freight.
In terms of intermodal trains carrying shipping containers to and from British ports, they will always exist and will rise in number as world trade grows again.
In terms of intermodal trains carrying European swap bodies and containers, be that traffic via the Channel Tunnel or via the East Coast ports, these will carry on running so long as the costs of running them do not rise to a prohibitive level - cost has historically been the major barrier to growth for these services.
In terms of trains carry bulk products by the train-load, these will carry on running.
Also, I expect the tiny number of wagon-load trains to carry on running along the same core network that exists now, bolstered by the continuance of MOD traffic.
The reason why you did not see many freight trains during your journey between Dundee and Sheffield is not because the railway is failing in any way. If you want to see large numbers of freights, many of which running one after the other, pop down to southern section of the WCML.
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