I read more novels now than I did 20 years ago, partially because I can afford to. And probably the fact that I no longer watch TV helps, too.

But I know I'm atypical in that regard.
I think, though, that with the development of portable electronics capable of using as book readers as well as a variety of other functions, book reading may come back into style. When book content is as easy to obtain as video content (e.g. you can turn on a channel and get some), it may compete better than it has in the past couple of decades.