The best computer algos beat humans at chess by a huge margin, to the point a regular PC beats Carlsen (and I heard even the best smartphone apps beat him).
Carlsen's ELO rating = 2853
Top chess program ELO rating = 3381
The number of DIFFERENT programs stronger than Carlsen = 59
I don't think it has. Much like horseback riding has not made olympic races obsolete, human competition remained fascinating. I for one very much followed the rise of Magnus Carlsen.
Personally, the fact that computers are better at chess than humans makes me less interested in the game so I'm a bit biased.
I do think that technological advances in general affect the appeal of certain games and sports by rendering them less mysterious or by bringing them further from a real world activity/situation.
Of course, I'm talking about relative, not absolute, popularity. Chess and horseback riding will remain popular for a long, long time.
It hasn't, in the slightest. The fact that computers playing at full strength can beat top humans makes no difference in the enjoyability of the game for people.
[0] https://en.wikipedia.org/wiki/Solving_chess