Does anyone else think this

We will not vanish without a trace. Some younger people do appreciate good music and analog equipment, including big speakers, amps, turntables and even RTR decks. Not many but they are there.
Often those younger people, and not so young for that matter, simply don't have space and that kind of money. I don't have space for big monoblocks even if I could find a few thousands to get those older Rowlands, Gryphons or Lamms used. I can't just put either speakers or those monos in the middle of the living room. I might be able to accomodate a big stereo amp, barely.
However, yeah, most are wired digiheads spending a lot on car stereo instead of tuning their cars and get performance suspension, brakes and tires.
So, it's not that gloomy. Yet.

Mapman, I suspect that you are wrong. I would guess that your daughter really likes your hi-fi. She just knows too well that it can't be hers.
By the way, I don't know about iphone but Samsung Galaxy4 phone sounds better than ipod and at least equal to ipad-mini with Grado sr225e phones. No, I don't use either of those, my relatives do.

I heard that Germans and Japanese are the craziest audiophiles. Did I hear right?

And if they continue like that, those next generations will become degenerations. There is always time for meaningful things.
Ipad sounds like crap compared to a good boombox with good analog recording and cassette. I used to have one, and it didn't cost much.

Because "cassette" is more difficult to pronounce than "ipad". Principle of simplicity, sort of.
I also remember my $100 Technics direct drive turntable, that despite all its flaws could get you into the recording. And I didn't even bother to clean the records then.
It's ridiculous how those i-devices sound - they can't get a single note right. Or rhythm, for that matter.