The short story is an invaluable vehicle for writers to develop their craft. In terms of voice, style and structure, the form allows for some extreme variation, which may not be capable of being sustained successfully throughout the lengthier novel form.
With more time being taken up these day in social media and the many varieties of 'sit-down' leisurely entertainment, the short story could potentially undergo its own popular revival. Novelettes and short stories may fill a reading void as they're a great way to sink into some reading without any serious time-commitment.
As for flash fiction, it certainly has its place but it is not a genre I take great gratification in reading. I might think that a piece is clever but I never seem to recall the story at a later date— there's no 'wow factor' a few months afterwards. Flash fiction (to me) feels more like a writing exercise rather than a 'true' story.
I see more and more anthologies at bookstores. Perhaps the short story renaissance has already begun?
I'll be presenting ten short stories that I consider highly recommended reading. There are of course a myriad out there that I am yet to read or regretfully may never even touch upon.