In terms of the existence of fiction, every genre of fiction still exists today. In fact, we can still locate the writings of ancient Greeks and Romans which dated back to as early as 10 B.C. The question to be asked is if these ancient forms of fiction evolved or just passed on from one generation to another. I believe that fairy tales have not evolved, but became one of the pioneers of the fiction we know today.
Let us first take fiction as a general term. Fiction revolves around the world we live in. From myths and legends, fables and fairy tales, to sci-fi, horror and modern fantasy, fiction takes form from one to another to fit the interests of the readers. To understand this more, we can compare fictions to movies. Like fiction, there are different genres of movies. In the movie industry, there is always an "era" of a specific genre.
Recently, we were bombarded by horror movies - The Ring 0 to 2, The Eye, The Grudge and more. After the series of horror movies, they soon faded away. Like movies, writers of fiction must always consider the taste of their readers. They must consider how the interests of the readers evolve. Because of this factor, traditional fiction does not exist today. We find them unsuitable for the present generation.
In addition to this, fiction defamiliarizes itself to become new to readers. This defamiliarization is evident in the form of the plot of the story. Most of the traditional fiction have an organic plot. In fairy tales, we always expect a happy ending. It starts with "Once upon a time," and ends with "They live happily ever after." Thus, in the middle of the story, readers can already predict the outcome. "Good deeds beget a...