I'm in the trenches here. I feed my family with my photography, so I'm sure I feel the digital crunch far more acutely than most. There are a million "moms with cameras" shooting portraits for a $25 session fee. And everyone has 8MP right on their iPhone. It's brutal. But people still come and pay me to do it. Just like 100 years ago, and probably just like 100 years from now.
That being said I think most of what's happening in the consumer market (tacky filters on every image, flare) as well as the fine art market (all the Alec Soth clones) will look horribly dated in ten years. I think the whole "pump and dump" 40x60 micro-editions from the photographer du jour selling for $40,000 each is going to pop. People are going to come back down to earth and say "Is this image really in the same league as Brett Weston? Is this really worth what I could spend on a vintage Strand?"