It's a common idea that somehow modern society's culture and arts are in decline. In any given age that might be the case, but mostly when people make the claim it's without evidence and amounts to nothing more than a "kids today" argument.
In Jane Austen's time, novels were considered frivolous and immoral. It's a running joke in her own books. Today, we consider Austen classic literature and novels the peak of serious art. Why are novels more serious than Netflix movies or graphic novels?
As someone who avidly reads literary fiction, I don't think the genre is in danger. There were no superhero movies when I was a kid, and people who read fantasy or science fiction were bullied. Genres come and go.
Amazon is the only real threat to literary fiction. Stop buying books from Bezos.