If the industry was going to mostly all smaller aircraft does anybody think Boeing would be building the 7E7? Don't they do market research before taking on a project like that? Not being scarcastic! Just an observation.
Take a look at the 7E7 range. It IS a small jet, relative to the A330/340, B747 that it can replace. The 7E7 is the point to point solution for Int'l flying, as opposed to the A380, which is the extreme version of hub-hub flying.
To the person who thinks Boeing made a mistake not making a superjumbo, I have to dissagree. Boeing didn't think that there was no market for superjumbos, just not enough for two competing designs to recoupe the MASSIVE development costs. And they probably figured no matter what they did, Airbus was going to build one. Which puts them in a great position to develop the 7E7, and Airbus will have nothing to compare with that for a while.
Lastly, I agree, RJ's are being widely mis-deployed. The longer routes need ariplanes like the EMB170/190 or B717, and the shorter stuff needs props (DHC-8 2/3/400's). They are also used to much to feed hubs instead of bypass hubs.