Far from it, it’s just that phone cameras are good enough to replace DSLRs or full-featured P&S for most users.
DSLRs are pretty much dead. The handful of pros I know either have or plan to transition to mirrorless. Or, a few shoot medium format.
Most of my friends have at least one mirrorless. Sometimes several. Along with a stack of both current and vintage lenses. But, they’re a well-to-do crowd with hipster tendencies, so YMMV.
My parents had several film SLRs over the decades. But when their Pentax was stolen on a vacation in the late-90s or early-00s, they didn’t replace it. They got a compact P&S and now rely on their phones. The SLR was only ever used for snapshots, not photograhpy as a hobby.
Personally, I grew up using their SLR plus a pile of cheap or disposable P&S. Then a few compact digitals. Bought my first DSLR in my mid-20s to get better family shots. Transitioned to a mirrorless about 10 years ago, have two bodies and a pile of lenses, but 90% of the time just use my phone. The cameras only come out for events, vacation, or on the odd occasion the mood hits.