An astute post. Certainly there's been a change in the way most people, including us old farts, listen to music. I still have my main system in the living room, BS9000 with BL9s, and BL8000s in the diningroom/sunroom/kitchen area. I find I still listen to music, but with either system it's usually streaming not CDs, either from Spotify or from my Auralic Aries Mini with all my ripped CDs on it. I use the BS9000 as an artistic looking thing to connect the streaming box to the speakers. In the dining room area, where I spend most of my day on the laptop and in the sunroom, I listen to BL8000s hooked up to a Tibo streaming box. And it's not "serious" listening as an audiophile would, in the sunroom it's good sounding music to accompany my day.
B&O's problems are twofold, one they don't know how to adapt to the changes you mention in the consumer electronics/audio world, which is tough for any company. Secondly, they have consistently done the wrong thing. They've displayed a staggering level of arrogance coupled with incompetence in product development and support. Buggy s/w, products that don't work right at launch, or ever, poor customer support, poor support of their dealers. You also can't just suddenly declare you're Ferrari and expect people to buy into that and your elevated prices, especially if you're not doing a nearly perfect job of product quality.
B&O has, in the past, come perilously close to death, but while they took a while to readjust to the market, they always were still B&O, with a consistent and alluring design language. Since the death of David Lewis their designs are, at least to me, inferior regardless of how good they may sound or perform, or not as the case may be. I think B&O have lost sight of what they are or were.
Oh, and here in the US, living not that far from a major city (Atlanta) which has enough moneyed folk that whenever I go to town I see at least 2 over $200,000 cars and more high end Benzes and Audis and such than you can shake a stick at, the only B&O dealer went under about 3 years ago. That makes my closest dealer a 20 hour plus drive away.