I think that was true during a window of time. When MP3 players first came out, you selectively ripped songs because of storage limitations and didn't just fill MP3 players with complete albums as might have been natural to do.

Napster, etc. also encouraged a shift to individual songs before iTunes took off.

In any case, for the most part, people were weaned off of the album concept which, after all, was a construct that was primarily a function of how music was delivered and sold.