I'd say killed is probably more likely... it's just that the other news outlets haven't gotten the word yet.
Snipers in a situation like that are probably trained to go for the kill if they're going to shoot at all - why risk him getting a shot off after?
The main goal is to protect the hostages, and having a mad guy with a gun get more mad because he's been shot doesn't really go with that goal....
EDIT: Yeah, Scott - you're right. Everyone has it now... gunman dead.