There are several factors in this scenario. Quite may people would click pictures to post them on social media which is mainly accessed from smartphones with 5-6" screen. Even when going through pics previously taken say from a trip or day out with family, viewing them over phone is very common and convenient. This set somewhat lower standard for sharpness/details in photo as people will not pixel peep every photo. Such standard is almost met with camera on phones where sensor size is nearly there (1/2.55" on Pixel 3) or better (1/1.7" on Mate 20 Pro) than that of typical P&S (1/2.3"). This warrants guaranteed death of market for P&S.
Coming to DSLRs, they are being replaced with mirrorless cameras which have sensor size same as DSLR but body size reduced to P&S. Sony is very popular and sort of leader with fitting full frame sensors in compact bodies. In near past, Nikon and Canon also jumped in this bandwagon of fitting full frame sensor in compact bodies with Nikon Z6/7 and Canon EOS R.
However, looking at trend of improving pictures with software on phone, I believe smartphones are going to eat more and more chunk of digital camera business though there would be one small bunch of folks who would stick to digital cameras.