There are plenty of examples of bands that broke up after a member passed away (Led Zeppelin, Nirvana, the Doors, etc), or bands that continued to be pretty successful even after a member passed away (The Who, Rolling Stones, Linkin Park, etc).
One thing that I've found to be kind of rare are bands that had a member pass away (specifically someone that was pretty well-known) and then either re-formed without much fanfare, or just replaced the person and kept going, but saw their success diminish a lot. I'm not talking about bands like Alice in Chains that re-formed and then have still been nominated for a bunch of Grammys, more "bands that were big, and then lost their status as a festival headliner, but continued playing" kind of thing.
For example, I was really surprised to learn that Blind Melon is still a band (and that most of the original members are still in it, versus it being like one guy from the 90s and then a bunch of hired guns), even after Shannon Hoon's death.
Another example is INXS, who continued for over a decade after Michael Hutchence's death, though they have since disbanded.
What are some other examples of this?