There's definitely a change happening with memory and knowledge, but it's not as straight forward as you make it seem here.
In the past, knowing something, having knowledge, meant being able to recall the fact (and understand it etc, of course). Now, knowledge is not knowledge about the thing but knowledge of how to find out about the the thing.
If you know where to find out about something, you can defer actually knowing it until you need it. The memory 'space' required to recall where to find out about something is much lower than that required to hold the information at that location in your head.
By reducing the amount of memory needed to be able to know about a thing, we can fill that gap with knowledge about where to find out about other things. We've essentially outsourced our knowledge about things that can be found online, and replaced them with meta-knowledge about how to find it, and massively increased the amount of things we can know about at the same time.
I don't think this is necessarily a bad thing, except for the fact that information online is transient. If there is one authoritative source for a piece of knowledge and that knowledge disappears, then in this new model, you no longer 'know' about it. And worse, you might not even know that you don't know it, because you don't go regularly checking that all the places you think you can find things are still there. It's only when you do the search when you need it that you find it's gone and then you're fucked. And this isn't just you, it's everyone who outsourced their knowledge of that information to that single source - they've all now 'forgotten' it.