Sorry about that. I can't remember everything I wrote before but you probably know the story without my reciting it.
If it makes you feel any better, things are no different in the U.S. I saw some numbers in Locus a few years back that listed the paid circulations for SF, fantasy and horror magazines. Almost without exception, they showed decline throughout the 90s. I expect that that decline is mirrored in other venues for the short story.
I don't think that only one thing is responsible. Partly, trends in literary style that worked (partly) for novels tended to militate against the traditional virtues of the short story. Partly, the story was killed by generalized literary pretentiousness and confusion (i.e. both the realists and the Bloomsbury axis seem to have been much too clever to read Oliver Onions or, say, Jack London. Woolfe's comments on Wells or Eliot's verdict on Poe.).
As for the papers doing short stories, I wouldn't hold my breath. They hardly want to do reviews anymore and there's really not much point in looking for coverage of books in papers if you've got access to the internet. If the story comes back, it might have to happen there.