I don't see it. For one thing, the classic creative pieces of literary fiction continue to sell and be read (and we don't even know how many other people read pirated or freely available copies of them every day), while more new fiction than ever in human history is being published constantly.
About the vast majority of that new fiction, we really have no easy way to tell which of it will one day be considered literary fiction too. Many of the books and other pieces of creative fiction we consider "greats" and literary today, were at some point just, fiction. Tehir future reputation wasn't yet known.
Not quite literary fiction, but Shakespeare's plays were their era's versions of Hollywood films for the masses, but look at them now. Similar applies to many books.
About the vast majority of that new fiction, we really have no easy way to tell which of it will one day be considered literary fiction too. Many of the books and other pieces of creative fiction we consider "greats" and literary today, were at some point just, fiction. Tehir future reputation wasn't yet known.
Not quite literary fiction, but Shakespeare's plays were their era's versions of Hollywood films for the masses, but look at them now. Similar applies to many books.