Here's what caused all the ruckus.
http://www.nytimes.com/2007/09/30/books/review/King2-t.html?_r=2&oref=slogin&oref=slogin To me, it is self-evident that Short Fiction is losing the "war" against easier types of entertainment: TV, YouTube, Movies, Videogames. Until something happens to make reading short stories "cool" again, the decline will continue.
I guess we need a Harry Potter for short fiction. ;) (joke!)