Yes, there used to be a tradeoff between high definition and size, and prices have gone down significantly, so everyone is better off. With audio, costs have gone down as well - for the price of a boombox in the early 80s you can now get a full system, but music consumption, and as a result production has changed. We grew up listening to music on the radio, or records at home. I remember when the walkman came out, that was not really a step towards better quality. Yet this is what kids wanted. Today, the same trend continues, with bluetooth earbuds which are selling like hot cakes. People wear them all the time - in the street, at work. They are quite discrete and convenient - no more cables, they operate seamlessly with your phone, etc...They come home and spend their time on their phones...no longer read, etc. At best, they may buy a bluetooth speaker for their living room, once again for the convenience. You go to a concert and everyone is filming the stage with their phones - looking at their phones, not at the performance. It's crazy.
This is the mass market where all the investments are going.
This is a trend, but there are of course still many people curious to experience things differently. Perhaps not as many people are taking the first step into audio as before? Hard to say without any actual data.