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In fact, looking through the available pre-1923 literature, a vast quantity of non-classics exist today, simply because they still have a considerable fan base.
Classics esteemed by the literary elite may not be esteemed by the public at large, and often are not, but a vast body of literature despised by the literary elite is alive and very well indeed in the digital world. I'll give three examples: William Hope Hodgson. Edgar Wallace. E Phillips Oppenheim.
It will eventually become apparent to all, possibly even the literary elite, that litfic is just another genre. Ultimately, it is sustained popularity with a wide public over the long haul which establishes whether any given work of literature is a "classic".
So a lot of the books which seem to have faded into "out-of-print" status and caused the big hole in the graph, could well come back as digital books (even if only as pirate digital books) simply because there is a demand for them not being met by publishers. It would be sad if it takes a thriving digital black market to goose legitimate publishers into action, rather than their own initiatives.
Quite a lot of the trouble, discussed here often, is that trying to coax digital rights out of copyright owners, or even finding copyright owners/heirs, can be a lot of work and expense, maybe not justifying itself.
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