Earlier quoted context omitted.
It's a generational thing. There has definitely been a change in recent years, especially the younger generation can no longer do much with the formal “Sie”, but of course they know it. I am 46 years old and have grown up with and been familiar with the “Du/Sie” dichotomy from the very beginning. It also has many advantages and offers clear relationships: There is no ambiguity as to which pronouns I use to address so…
It seems sort of like calling other people ma'am and sir in America. Everyone knows what those words mean, but younger people will almost never use them (except in specific American subcultures). Some people may be offended if you call them sir/ma'am.
In Denmark nobody adresses each other formally, unless you're royalty. Parliament also does it during debates, but that's pretty much it. It's weird when it happens, and it's usually some store clerk that does it out of a misguided attempt at politeness, but to me at least it has the opposite effect. I am not a Hr. (sir), I'm just some dickhead buying cigarettes at 1 AM.
I Denmark we at least pretend everyone is equal. The CEO of the company is just John. We eat lunch in the same break room at the same time.