Where did literature go wrong, who, or what is responsible for its demise? I actually think I can answer that one for you. But only read on if you subscribe to the belief held by the majority of publishers, agents, and editors. - You have the ability to write, or you don't.
Historically, literature was for the upper classes, the educated. Epic complex sagas were written which only they understood. Those working in mines and cotton mills had no need to be involved They had other pastimes such as revolting, eating cake, and being sent off to war for no particular reason.
Then came the silver screen. Those uneducated, illiterate heathens could watch the stories. But they were simple-minded folk, for them, the stories [screenplays] had to be clear, structured and predictable.
All this time the UK education system taught English Literature and English Language. With globalisation and migration, the whole meaning of the courses involving the word "English" became confusing – it required re-branding.
The money men seized their opportunity. By cobbling together simple US screenwriting techniques with the redundant English Language course, business had a marketable product. Called "Creative writing," this new course was taken up by the millions who could not write. Somehow they believed this magical course would turn them into writers of great classics. The untalented millions graduated, and began to flood agents and publishers with manuscripts. Meanwhile, western education systems were providing improved education for all. The problem was, all the writers were trained to write simple stories in a clear and succinct manner with perfect grammar for the non-existent 'dumb reader.' The dumb reader no longer really existed, he was extinct, but the system had created a lot of dumb writers to cater for him. Such were the numbers of dumb writers, they dominated the industry. They declared anything that wasn't written according to the dumb standards as - shit.
The dumb reader, now c/w University degree reads old classics when looking for something to read. Modern literature? Well that's just a big kiddy comic,, with no pictures. - What fun is that? No. When he wants mindless entertainment, he watches TV. TV has pictures that move.