I think it's actually being slowly eroded away from different angles. It's niche providers. WordPress being a huge niche, I've been watching it grow from everyone being in the ~$20-30/month range to full on enterprise grade hosting (http://reviewsignal.com/blog/2016/09/14/500month-enterprise-...).

But there's at least a couple dozen providers now who have built WP specific infrastructure at all sorts of price tiers for consumers.

You've also got your SquareSpace/Wix/etc. Shopify. Traditional shared hosting is becoming less necessary in my mind for a lot of use cases because companies are specializing in areas where you would normally say 'just get a shared hosting plan.'

The biggest problem though to completely get rid of the shared hosting space is price. Digital Ocean works because the lack of customer service. Shared hosting needs to have a lot more customer service (or you get EIG). But at the $5/month price point, the economics of it are terrible. The way to get around it is specializing, reducing complexity and issues, which is exactly what I see happening.