It's not dilution, it's a natural expansion. Doctrow's original formulation describes one kind of motivation, cash profit. There are other forms of profit, political and social, and as the symptoms and results are the same as oldschool enshittification, and the word itself doesn't have an intrinsic connection to economic incentive.

It's not just 'things getting worse', it's 'things getting worse due to the deliberate choices of power brokers motivated by selfishness and displaying a tenor counter to the esprit of the service/product/community.