Well, there are rumors that the new era of Doctor Who will bring back Gallifrey and the Time Lords. I have my own little crack-theory as to how this might happen.
I give you:
How Gallifrey can Still Exist
The Doctor once said that it "feels like there's no one", meaning he couldn't sense any Time Lords poking around in his head (or whatever it is they do).
HOWEVER, this does not make it an absolute fact that there is indeed, no other Time Lords lurking around the cosmos (case in point, the Master).
My theory is that the Time Lords did not perish with Gallifrey (by means as yet unbeknownst to me), but rather had a train of thought something like the following:
"Stupid Doctor, thinks he can blow up our planet! Screw him! A couple hundred years of the cold shoulder ought to put him right! So THERE! NYAH!! XP"
{and that is how it all went down}
{also, I ought to add that my knowledge of ClassicWho is pretty near nonexistant. Also, this is complete crack.}
x-posted to
doctorwho