I have loved icky bug since I was a pre-teen, and that was a long long time ago. I was a young whippersnapper during the cold war when we dove under desks just in case a nuke went off (like that would do any good). I squeaked by Viet Nam and lucked out when the Air Force sent me to Spain instead. I lived through the 70's, 80's, 90's and all the crap that went on yet my taste for icky bug never wavered. I watched trends change from good monster horror to the slasher crap to the ho hum vampire crap to the mostly cool zombie genres. All along the way, there has always still been the good old b-movie monster horror that I've loved since I saw those giant ants of Them in black and white that scared the shit out of me, or Gort melting that tank in the baseball diamond in DC or The Beast from 20,000 Fathoms destroying NYC. My love of that has never wavered in almost 50 years. Not to date me...
Right now, it is harder to find. I write it, I will continue to write it. Later this year, I am going to publish one of my novels on Kindle and see what happens. It may sink, it may swim, but it will be out there. Yes, horror is harder to find, but not impossible. You just have to look harder and maybe not through the usual channels, or might I say, the "traditional" channels. And, to address the specific theme of this thread, I think there is still an audience for it, in books and in movies. If not, for instance, SyFy would have no audience every Saturday evening. They surely do, despite some pretty crappy movies here and there.