Hmm, what have you read that makes you say that? Because, I admit, I've largely checked out of litfic written by Americans, with the notable exception of Toni Morrison--and her books aren't exactly a fun-fest--because I do tend to agree with Cat Valente's criticisms of it.

Translated literary fiction seems to have less of a case of the doldrums, but a lot of it is also pushing the bounds of the genre (Garcia Marquez and the magical realists, anyone?).