A huge part of the backlash of Disco music was rooted in Anti Blackness and Homophobia/Queerphobia.
The fact that a white, straight man was at the forefront of officially ending Disco's mainstream reign in music is evidence of that.

Many of the most popular Disco records were sung by Black women. The people who filled Disco clubs were Black and Brown LGBTQ folks. The culture of Disco was inherently the antithesis of everything White America put forth to represent.
So yes, Disco didnt die cuz it was cheesy.

Disco was shoved out of mainstream music platforms bc it was too openly Queer, it was too classy and shiny for White men that enjoyed controlling the narrative.

The last commercially successful Disco record was Off The Wall by Michael Jackson. That record would go onto influence a generation that would later make some of the greatest RnB records in the 90's and early 2000's.
Disco went underground and even birthed Hip Hop music.

Like many Black originated sounds Disco would continue to revive/reincarnate itself in other sounds such as Hip Hop, Synth Pop , House music and etc. Disco just kept living even when it was supposed to be dead.