In my opinion, all the best art expresses the "unknown knowns" of the human, i.e., the unconscious that has not been brought to light. Art is an expression of what is really true but not known. Knowing about it doesn't make it easier to express. To bring up the old trope, the curtains are never just blue, not in the sense that the artist is always putting in some conscious meaning, but that the choice of blue says something about the artist's human feeling even if they didn't intend it

> breadth and depth of understanding about psychology have improved dramatically

Provide one tiny bit of evidence for this. Do you seriously think that Shakespeare (for e.g.) did not have a profound understanding of human psychology?

or maybe hyper connectedness is just making writers more distracted, making it harder to see deeply into human relations, feelings and thoughts