I still do albums ~75% of the time. I do a decent print business. I even still get my share of thank-you card, print on canvas, etc., orders. And I've ben a la carte for years.
Part of this is owing to the fact that I price things modestly enough for it to be reasonable. My 8x10's aren't the $20-$30 some photographers charge; they're just $8.99. I'd rather sell 100 8x10's at that price than 10 of them at $20 . . . or none at $30. And since it's just a pass through and it consumes no time or labor on my part, there's no reason not to out with that kind of pricing.
Zookbinder albums aren't top tier, but they're at least second tier and far nicer than some others. On average, my clients go for a 12x12 with ~40 pages. Depending upon other choices, that might go for $1,500 - $1,800. Yes, they can buy Zookbinders directly. But that is not broadly known. I also do all the design work, make that process very easy for them, and take care of logistics and they see enough value in that to buy from me instead of direct. And since they've already paid $500 for their disc and that will be a sunk cost if they go outside for their album, buying from me becomes a very easy decision.
I think it was said earlier, it's about providing a service experience. Shooting is only the first part of the service experience, but definitely not the last. The market for products is still alive if not vibrant. But you need to have this stuff priced in such a way that you are fairly compensated for your time and expertise but that price also represents good value to our clients. A la carte allows more control for your clients to do what they want when the want. That's valuable to them. But if your pricing model is right, that doesn't mean they all beat their way down the DIY path.