When "free shipping" is what consumers expect, do you think people are ready to pay for better service? It the package is lost, it is often cheaper to write it off as a loss and send another item or refund.

If you need overnight shipping, you can have it, but it is not cheap, so most people won't do it. As for documents, is is all electronic now.

Logistics is very much alive, but it is adapted to our needs, that is massive containerships for worldwide trade, local warehouses for fast delivery of common items, reliability that is in balance with the cost of losing items, speed matching what people are ready to pay for, and specialized services for special needs, like overnight shipping.

EDIT:

It made me think about the "Lettre Verte" in France, named after the green stamp, and also supposedly because it is good for the planet. It was introduced early 2010s as a cheaper, slower (2 days instead of 1) alternative to the "priority" red stamp. And now the red stamp is gone, replaced with an electronic service and the green stamp is now 3 days instead of 2. Mail has become much slower overall, because there is much less mail than before, and fast service is not economically viable nor essential on a day-to-day basis. La Poste used to have a dedicated high speed train, equipped with sorting center for overnight mail across the country, now decommissioned, not enough mail to fill a train.