I really don't think we have. When I was growing up in the 90s it was the heyday of the pop single but there were still plenty of albums being produced and I think it's the same today.
The choice is still there for any listener that cares about albums as a format. I don't mean that in a negative way. I suspect that many people listen to both playlists of singles, and albums of their favourite artists, depending on mood.
agreed with this, I would almost go so far as to say there are more full length albums being created than ever before.