Not dead at all. I’ve just bought a new bike on the scheme, and expect to see over 50% savings, with the parts all bought at discounted prices from online retailers.
The “full price” restriction is only imposed by some retailers if you’re using a commercial scheme operator such as Cyclescheme. If you’re company has a self administered scheme, you can buy from wherever you like at whatever price you can find.
The impact of the minimum final value can be substantially reduced by deferring the final payment, and paying less than the fair market value price and just taking the tax hit.
To answer the OP, you need to be an employee, and you need to be paid a salary, so that you can sacrifice some of it.