I think that in many ways you're right that photography as an art is being degraded by the enormous number of "practitioners". However, this hasn't really changed top-tier photography. National Geographic still has amazing photographs, and there are still talented photographers out there that can blow your mind with the images they capture.
What we're witnessing is culture changing I believe. Welcome to globalization, welcome to the age of the internet. Marshall Mcluhan saw it coming over 60 years ago. It's changing the way we perceive the world, particularly newer entrants (a.k.a. kids).
I would say that music was fundamentally changed in a similar way with the advent of multi-track recording. The kind of culture that existed before this focused on live performance, and it had become a highly refined art form with amazing groups, bands & ensembles. Kids today though never consider the importance of their live performance when it comes to making recordings. Take it from me... I'm a kid! However, where there's a gap or a drought of talent, someone well poised will come along and fill it, potentially in a revolutionary way.
Everything changes, but photography isn't going anywhere, it's just going to develop a new culture.