Yes, the Twins season is over, after they dropped three straight games to the Yankees, including two in Minnesota. The series had the exact same result as last year's ALDS, with the the Twins winning the first game in Yankee Stadium and then New York taking three in a row to set up an ALCS against Boston.
What went wrong? Well, there are lots of theories that I don't feel like going into right now, though I do think there's something to the theory that small/large market differences really come out in the playoffs. At any rate, the Twins have so much organizational depth, and so many young players ready to rise, that I expect to see them back there for years to come. And one of these times, they'll finally get beyond the first round.
For more end-of-the-season thoughts, here’s Gleeman, Bonnes, and Batgirl.