There's enough high quality video and audio news that it's fully possible to be an engaged and informed person even if you can't read for shit. Plus, text-to-speech is very good now. You can listen to written articles as well, even if you can't read them. You still need to evaluate sources and fact check, but that's a separate skill (albeit one most literate people also fail at).

I don't believe the literacy rate is a measure of intelligence, when the "three cueing" educational calamity is right there as an obvious explanation. That and Americans just being overworked and exhausted and sick all the time.