Coincidentally, my wife and I were discussing this yesterday. We watched "Room on the Broom" and I commented on how likeable and endearing witches have become in stories these days. Similarly with ogres (Shrek) and the various teen fantasies with werewolves and vampires.I think it's part of the disneyfication of "monsters".
Everything develops sparkles and sugar, cf Twighlight vampires. Which means they don't fill their original niche.
I'm interested in the way this goes. Do we develop new things of awe and wonder, things that aren't comfortable and predictable, or do we lose a whole swathe of imaginative landscape?