There's room, as there's always been, for PBs and storybooks. The need for both hasn't changed in the last fifty years, IMHO, despite technology. What changed is a more recent combination of beliefs of what is perceived as important or unnecessary, or necessary or impossible. Like many things, we don't see the error in our logic (or beliefs or assumptions or...) until we see the outcome down the line, or until someone assembles information in a way that suddenly "proves" popular theory/thought incorrect. (Pluto isn't a planet vs. the "new" math 50 years ago to the present core curriculum.)
History proves SO many methods/theories/beliefs/approaches are guesses, in many things.
There have always been parents who, regardless of marital and/or employment status, will delight in reading to their kids (and skip verses or pages, a time-honored parental profession, when necessary). And there's the parents who don't read to their kids at all. And a lot of those kids want to dive into the worlds that books offer. Some find a way. Some don't.
Of course you market to those who buy a product!
But marketing is about telling--showing--people how much they need the product, much like what writers have to do to impress an agent/editor. If publishing is saying there's no room for storybooks anymore, then to me, that says a number of things...one thing is that the industry isn't as strong as it should be. As tough as they are to break into, and with the clout they seem to have, you'd think the marketing drive would speak more to the FUEL that books and imagination can--WILL--offer.
Every marketing generation has competition. We should have known--but now we're seeing--that human evolution can't keep up, in the long run, as we perceived, with technological advancements. Things suffer.
We're pandering. Been pandering. What's next because of it.
Just some of my rambling thoughts, of course. (When I rule the world one day as benevolent dictator, things will change, and I'll remember the Blueboarders--just so you know.)