I have the feeling I lived through the part of the story of Lioon Reza finally fading and the knowledge becoming public(of course not at the same time). But still he wishes us a good day in the announcements in the city. Recently a Copbot told me how he reigns pover the city. And such things.
I guess adjusting NPCs and such things to the lore isn't really a high priority. And somehow it would be sad to have an announcement gone and not replaced.
But nonetheless I found it amusing that many people speak of him as if he is alive.
I can't remember the exact circumstances of his death, it wasn't really that important since he never was a public figure, so it staid the same after he was gone, but I guess if this circumstances were somehow fitting, making him come back would be an alternate solution. But I do not know how credible that would be ;-)