Spoken (or written, actually, I suppose) like a true writer!
Besides The New Yorker, who pays money for short fiction anymore? (A few genre magazines and anthologies, but that's about it.) It's not so much that magazines "overlook" great fiction as that they've simply stopped printing it, because, one presumes, their readers don't care anymore.
Likewise with book publishers. The audience for novels has become shrunken and fragmented into innumerable niches that are, individually, too small to earn back the cost of publishing a printed book. We could go round and round about why and how this has happened -- a certain amount of blame, I think, can be placed outside the publishing industry, for example on university creative-writing programs that essentially train writers to write for other writers and for award and grant-giving committees.
The bottom line is that reading habits have changed and the publishing industry has not yet figured out a good way to respond. The iPad and other digital venues might offer a good and fun and effective way forward. Opening up the iBookstore to energized independent writers would be a really good thing for literature. Not many writers would succeed in breaking through this way, I suspect, but readers and writers alike could only gain from it.
Personally, I'd like to see more talented writers try their hands at hypertext fiction, which was kind of a big thing for a couple of years in the 90s, but seems to have gone roughly nowhere since. Eastgate Software, which created the first serious hypertext writing tool, Storyspace, does not seem to have even bothered with keeping the software up to date.
There's a potentially big opening here that somebody really ought to jump through -- and Apple really ought to make it possible.