I don't think it's a sign of overall decline in literacy - unless of course your definition for someone literate is knowing every style, rule, and convention of writing (novels, business letters, poetry, prose, short stories, lyrics, angry messages on the back of notebooks, etc.). If that was the case, then yes maybe.
I think it's more of a lack in the formal education towards writing novels. For instance, I have not received any formal education in writing novels as my course was not in any way related to writing novels.
So, conventions followed in that particular area of writing may not be obvious to me and thus not followed until someone finally points it out. Certainly, none of my university professors ever pointed it out because I was never asked to write a novel. Business reports, studies, essays, etc. - we did those. Novels? No.
It may be like asking a novelist to do a research paper and then telling him that he did not follow the MLA format for citing sources.
I wouldn't say that he's "showing sign of the overall decline in literacy"1 as was suggested.
Maybe we should define what counts towards literacy these days?
SOURCE:
[1] Agincourt. "One of My Pet Peeves." Gay Authors - Quality Gay Fiction. Ed. Myr. 24 Sept. 2010. 24 Sept. 2010 <https://www.gayauthors.org/forums/topic/29506-one-of-my-pet-peeves/page__pid__266566#entry266566>.