What is fantasy if not a genre? I mean, I read number9dream the other day and it falls into a sort of vague postmodern magical realism category, but it shared all sorts of traits with modern fantasy: perversion of the Bildungsroman, extended dream sequences, sinister villains, more questions asked than answered... It could have gone on shelves as "urban fantasy" and no one would have batted an eye.
If you aren't writing Tolkien-lite these days, your book won't get listed as fantasy. It's almost like there's no good fantasy left by definition. There are still plenty of stories being written that pique my imagination in the same way Lewis and Tolkien and Alexander did, you just have to look elsewhere.
If I had my druthers, the genre would disappear for a few decades and give some people time to recharge their creative juices. Brandon Sanderson is an incredibly nice guy, and his books generally make for an enjoyable couple of hours, but it's no accident that he writes one every six months. He grew up reading the same genrefied stuff I did, you did, we all did, and it melted into the back of his brain for resynthesis on cue. He represents the pointlessly of the whole industry. Don't diehard fantasy fans ever get tired of reading the same stuff over and over again? I browse r/fantasy once a week or so; they don't.