I've read a lot of great short stories and see how powerful the medium can be, but then again I've also read a lot of bad ones that make me realize how much the medium is flooded with crap.
I feel that in today's day and age, there simply is not room for the short story. Short stories served a big purpose before the development of television and movies, being an entertainment form that provided a complete story or idea in a short investment of time. However, now that we have television and movies, we can get our entertainment in the short term from other sources, and the short story with a relative inconsistency of quality and accesibility from one to the other, looses its appeal. Who still keeps up with modern short stories? Where do you find them, and of them, how many of them are really worthwhile?
See, the problem with short stories is twofold. The first is that they are easy to write, so any not so decent writer can write a glut of them and fill the marketplace with them. The second is that due to the brevity of the medium, many stories that are written well with good ideas end up being under-developed anyway. Since, there's so many short stories and they get read so quickly, it's kind of hard to really become enthralled with it as a medium, especially considering the inconsistency of quality. Great ones are hard to come by, because they really need to feel as though they totally fit within their length. There's many to be found within the anals of literature, because they were preserved, and the other ones tend to fade.
I still see the value in reading the classic short stories, but nowadays shorts just seem relagated to writing students flexing their skills and to authors that want to have a whole bunch of movie pitches. Hahaha. No, I'm kidding, but what I mean is that you don't see authors doing it much at all anymore. Stephen King did some back in the 80s or whatever, but looking at the form, it seems to be dead commercially. Gone are the classic short story magazine and instead are websites brimming with mediocre stories upon mediocre stories that must be sifted through to find the gold, a sifting that's not worth it.
It's a dead medium outside of short story communities within academia, and unless we have some source of really GREAT contemporary shorts, it's going to stay dead, because TV and movies are simply better and easier to access nowadays.