I haven't played it, but I heard you blow up Toni Cipriani's Portland safehouse in it. The safehouse is there in LCS (of course), and already blown up in GTA III. This means GTA Advance is set in between LCS and III. 8-Ball is in GTA III, so, according to my logic, no, 8-Ball doesn't die in GTA Advance.
GTA Advance is set in 2000, one year before the actions in GTA III (2001). In the Liberty Tree there's an article where 8 Ball says that his hands were badly damaged when a policeman accidentally poured hot fat on them. But in GTA Advance you can see that 8 Ball gets serious fire wounds by Flame Throwers of an enemy gang, in a mission at the end of the storyline.
Mike: The main character. You play as him. He escapes Liberty City in Cisco's plane at the end of the game. Vinnie: Mike's 'boss'. He supposedly dies early in the game, but it's revealed that he just didn't want to share his cash with Mike. Mike then kills him. 8-Ball: Owner of a bomb-shop and one of Mike's employers. He is badly injured and arrested late in the game. Jonnie The Bartender: Owns a bar and is one of Mike's employers. He is assasinated by the Yardies. King Courtney: Leader of the Yardies and one of Mike's employers. Vinnie worked for him, and is behind everything. Mike kills him at the end of the game. Cisco: Leader of the Colombians. He is involved in the drug trade, and is one of Mike's employers. He is killed late in the game. Asuka: Leader of the Yakuza and one of Mike's employers. She betrays Mike late in the game but escapes.
I hope this clears everything up. And no, I didn't copy and paste this. I made it myself.
GTA Advance is a GTA game that was made specifically for the Gameboy Advance back in 2004.
It reverted to the classic top-down/birds eye view due to the GBA's limited graphics. The game wasn’t brilliant but it was another story to the GTA world, one that answers a few questions as it is set after LCS but 1 year before the events of GTA 3, so most likely the year 2000.
More information and further details on the storyline can be found here.