If you go to beach boardwalk type areas, there are still quite a few actual arcades. At the end of last summer I went to the Jersey shore for the first time, and I saw probably half a dozen arcades on the various boardwalks.
I go to Coney Island probably once a year also and I'm pretty sure there are at least a couple there too.
There are definitely new games being made, though I don't know how many are in the traditional standup form factor. I know some are, though, but to me at this point they always look kind of low-budget so I don't really bother with them. A lot of big new games are in kind of showpiece, almost theatrical cabinets with a lot of stuff to attract people, and I'm not immune to that. The two games I played the most at the arcade last summer were The Walking Dead (great light gun game), and Space Invaders Frenzy, both of which have massive cabinets.
There are definitely a lot more in Japan, and some of those must make it over here too, but I'm not sure. But there's gotta be like, a Tekken 7 cabinet in the USA, right?