Yup, the AAA market will be a small pond with a few giant fish.You're right. When including DLC/MTX spending, in many cases revs are increasing at a faster rate.
Bigger challenge is that the winners will be bigger winners, and losers will be bigger losers. Risk will continue to grow, but so will potential upsides. Also, the barriers to entry of these markets will increase.
The result will be fewer games over time fighting for this space, but with each "winning" game getting bigger and delivering more return.
I'm happy the indie market is flourishing and giving us amazing lower budget games with much lower barrier of entry to the market.