Quote was from NKJV. The context of the verse from KJV dictates that those that should be killed were in fact killed. We are in agreement in regards to the Two Witnesses though.
I believe the verse reflects all those throughout time that have been demanded to bow before images, and we know how the story goes
Daniel 3:8-18KJV
8 Wherefore at that time certain Chaldeans came near, and accused the Jews.
9 They spake and said to the king Nebuchadnezzar, O king, live for ever.
10 Thou, O king, hast made a decree, that every man that shall hear the sound of the cornet, flute, harp, sackbut, psaltery, and dulcimer, and all kinds of musick, shall fall down and worship the golden image:
11 And whoso falleth not down and worshippeth, that he should be cast into the midst of a burning fiery furnace.
12 There are certain Jews whom thou hast set over the affairs of the province of Babylon, Shadrach, Meshach, and Abednego; these men, O king, have not regarded thee: they serve not thy gods, nor worship the golden image which thou hast set up.
13 Then Nebuchadnezzar in his rage and fury commanded to bring Shadrach, Meshach, and Abednego. Then they brought these men before the king.
14 Nebuchadnezzar spake and said unto them, Is it true, O Shadrach, Meshach, and Abednego, do not ye serve my gods, nor worship the golden image which I have set up?
15 Now if ye be ready that at what time ye hear the sound of the cornet, flute, harp, sackbut, psaltery, and dulcimer, and all kinds of musick, ye fall down and worship the image which I have made; well: but if ye worship not, ye shall be cast the same hour into the midst of a burning fiery furnace; and who is that God that shall deliver you out of my hands?
16 Shadrach, Meshach, and Abednego, answered and said to the king, O Nebuchadnezzar, we are not careful to answer thee in this matter.
17 If it be so, our God whom we serve is able to deliver us from the burning fiery furnace, and he will deliver us out of thine hand, O king.
18 But if not, be it known unto thee, O king, that we will not serve thy gods, nor worship the golden image which thou hast set up.