It certainly is changing. It is hard to say for better or for worse and sad to see any business close. The future of many publications is on the brink for a variety of reasons...
It seems this was the same problem after WWII when photography took over illustration in magazines. Then the pulp fiction market opened up. What's the new markets for illustration?
I am not sure. There is a lot of content in video game production. I think there will be a more robust market for galleries and hand done illustration too. There are more and more collectors.
America is a society of collectors. I did a pod cast with PaulBudnitz founder of Kidrobot, http://scotthull.com/artists/blog/75/, who based his business on limited edition collectors. The problem is building a career making art without an outlet or distribution source. That's where magazines have helped launch careers to the masses, i.e. Rockwell with the Saturday Evening Post and Boy's Life.