"The best camera is the one you have with you"
So another plausible path is that the damage has already been done, and what is left of the prosumer and pro level stuff will remain stable.
Note, I'm not saying that I think that is what will happen, I haven't thought about it much. But there is nothing in current tech development that suggests the phones will bridge that gap (to prosumer level image quality) any time soon...
It's a concerning trend, which makes me hope that camera manufacturers get ahead of the trend by introducing features that I feel are lacking in "real" cameras.
The first two categories are well served by any smartphone camera nowadays, which leaves the third. And here I think that this is still served best by a dedicated device because you are basically really interested in taking pictures of a certain quality. And no, the current state of the art in fake-bokeh will not really hit this group (it's a very small group though and the instagram-people with their nice portraits will probably go for the fake too. Though they probably could just do a 3D-scan of the person and then do a render (no more bad hair. no more bad skin. pure perfection). Doesn't necessarily have a lot to do with photography though).
If someone can make a phone that gives convincing fake bokeh and covers wide, normal, and tele focal lengths while producing images that are even remotely comparable to a "real" camera in an 8x10 print... that person will demolish what's left of the camera industry.