Aren't you guys overthinking it? I am sure none of the "separates" actually sell in the millions or even thousands. Schiit has done exceptionally well and they stated they sold 50,000 last year and you can bet most of them were the entry level Modi 2 at $99 or $149.
How many of us have friends or relatives with a decent stereo setup or home theater? I have 1 childhood friend who has an Onkyo home theater, the rest 100 or so folks I've known from my childhood don't even have any dedicated equipment for music. It's either the TV, or their smartphone.
This has always been the case, audiophilia has always been and will always be a niche market.
The only folks I know with any serious audio and video equipment are people I've met via forums like these and at audio meetups and shows, and that's a fraction of the over 7 billion of the world's population.
That said I do agree with what Hari is saying even within the audiophile niche, but its not about a disappearing market, but actually the market improving especially in terms of technology.
Single unit solutions are capable of delivering better sonics. For starters doing away with all the cable clutter does wonders for the SQ, trust me I've been doing it. Likewise with no moving parts, isolation from other elements/components, etc. We've always had powered speakers and up to a price point they have always outperformed separates. Actually that's wrong because from what I've heard from others, the ATC actives will actually destroy any separates at any budget.
I actually believe the Naim Mu-So, Devialet Phantom, Dynaudio X6, etc. are an improvement over traditional separates, and that's actually a good thing. Klipsch has reference wireless powered speakers for the home theater. Just a hub, and a remote. That future is actually looking good by doing away with all the conventional chain of separates.