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I think we should read the actual study before we accept the premises set forth in the article.
For one thing, the magnitude of the reduction in self-identified empathy isn't reported. Either the article author didn't think it was important (possible, but poor form) or the study authors didn't communicate it. If the study authors didn't communicate, it's possible they didn't think it important (possible, but poor form) or it's possible that the differences between students now and students 30 years are statistically significant, but not clinically significant, ie the difference found in the study is likely not due to randomness, but the effect isn't that large.
Assuming that the large sample size is relatively evenly distributed amongst the different periods of time being studied, it would be pretty easy to find statistically significant but practically insignificant differences between different groups.
It's also possible that some of the effect is due to declining ability of college students to accurately self assess their own levels of empathy.
On a more general note, one should always be wary of claims made in news reports about forthcoming studies.
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