cinematic games are those that take the player out of the direct gameplay, either via cutscenes or non-interactible scripted sequences.

being linear or holding the players hand doesn't inheritently do that.

also no, competition doesn't mean other types of games take a step back, majority of games don't fit the same mold. Popularity of an aspect "let's say open world" may influence a lot of games to experiement with that feature, but it isn't going to affect games that have no use for it. Even then the problem isn't really with the games themselves, but more so with publishers wanting to cash in on trends. The ideas aren't the problem.