I’m sure the entry-level is still very much alive as young folk love music as much as ever, it is just different. Headphones are a huge deal, as are nice desktop or portable DAC/headphone amps/preamps. I suspect those in that sector just add a pair of little active Genelecs, Neumanns or whatever and have a hell of a good digital system. Richer certainly deal with the headphone aspect.
To be honest playing around with Qobuz and a Chord Poly/Mojo has helped me better understand the modern marketplace. I know that is far from entry level, but it isn’t oligarch-fi by any stretch, and conceptually it shows just how easy and versatile modern audio can be. Superb with headphones, fits in your pocket, even has an SD slot for a music library, and works great as a preamp with speakers too. I’ve used it straight into a pair of vintage Leak mono valve amps, but a pair of active monitors would be far more its context. Adding a record deck to such a system would be complex and expensive, but I can see a lot of folk needing to go no further.
The UK is in such a mess economically comparatively few younger folk get to move out from the family home, so a headphones and small desktop monitor rig is likely as far as many will get before middle-age. I was well out the door at 18, I don’t think many are these days.