I'd point to fan fiction as a possible outcome. Most writers are never recognized, and they don't seem to be phased by that outcome. They write for themselves

I'd point to fan fiction as a possible outcome. Most writers are never recognized, and they don't seem to be phased by that outcome. They write for themselves and develop a niche that they are happy to contribute to. Just because the cost of writing and publishing has plummeted doesn't mean it's less valuable, it's development becomes either decentralized or internalized.