On the one hand, I agree that there are still too many sub-standard books being published each month. On the other hand, there are some very good authors who are hurting as this market correction continues. That we will be left with a bi-polar market, with the Danielle Steele wall on one side, the Precious Gems and category romance wall on the other side, and a huge, empty space in the middle. We don't want the mid-list to die. You are absolutely right in your assumptions that if we look into our crystal ball we are indeed hurting the future of the romance genre by not continuing to develop authors.
People do get tired of backlist titles.
One of the big problems today is the consolidation of wholesalers and book chains. Where there used to be 1,000 or more distributors, there are now less than 200 and apparently that number is expected to drop to 50. That means 50 people buying for all the grocery stores, drug stores, etc. A book does well, the next is bought. If it doesn't, good-bye author.