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The American dream is still alive and quite strong, and we can see this by the large number of immigrants risking life and limb still trying to get into the country to this day. But for the average American it's a bit more faded and one big reason is pretty simple.
What is it? Life is simply better to begin with. Even the poorer end of rural Americans still tend to have somewhat reliable food, clean water, safe shelter, entertainment that even the kings of old could only dream of (who needs a royal jester when there's millions of them on your TV and computer), good looking comfortable clothing, and medical treatment among many many other things. That's not to say there aren't still problems but the lives of most citizens are substantially better than even many upper class of the 1800s.
You don't have to go to the big city living next to horse manure filled streets with one arm from a factory accident anymore because the alternative is somehow even worse. Despite the gap in wealth increasing substantially the actual life experience has narrowed. Even the average home is getting larger, putting them closer and closer to mansions despite smaller household sizes. There's simply less to aspire towards, and the American dream has always been one of aspiration.
It takes a somewhat adaptive and entrepreneurial mindset to really make major money from nowhere. Any simple answer is liable to go the same way they've always gone, a flood of new workers over time chasing the simple money.
But the good news is, if things go well, we might even need to worry about it too much. Perhaps AI and automation are so incredible that even the poorest of rurals will now benefit from the personal maids and private chefs with very little work done in exchange. The American Dream may dry up completely for citizens because we'll have reached the peak of the mountain and find ourselves nowhere else to climb. (And hopefully not some sort of great war over resources wiping out most humans or some other doomsday scenario).
Philosophically that scares me, how will we find meaning in this life where no jobs are even needed anymore? Can humans handle Paradise? But if we disregard that sort of concern for a second, then the life is better and you will have no need for an American dream any longer because that dream will be the default.
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