I'm not so sure, based on my anecdata:
In my Midwest city, out of 8 traditional malls I can think of...
- 3 have totally closed and are being torn down
- 4 are drastically lower quality, lost their anchors, and have much lower traffic
- 1 is still doing about as well as it did 30 years ago.
In the entire IL-WI-IN region the only high end mall I can think of that is even remotely comparable to Valley Fair or Santana Row in San Jose is Oakbrook Center by McD's HQ, but that still feels a bit trashy compared to some of the ones in California (no offense meant at Chicagoland btw)
The upscale malls here in California have pivoted to cater to Asian and Latino tastes and sentiments - both are communities which are fine with Malls as a social construct. The kinds of upscale malls here like the Westfield in La Jolla and San Jose or Santana Row are definetly catering to someone who has experienced malls in Asia and Latin America, where it is a much more upscale experience.
The types that cater to Western sentiments seem to be dying though in the Bay Area (eg. Westfield SF didn't pivot unlike Stonestown Galleria and is now dying).