It tells me that people are, as always, morons. That occult material's been there as long as I remember, though that's not very long. Certainly before Harry Potter.
Personally, what I pay attention to are the stacks of new children's novels, the thick ones on the front racks with complicated names and interesting stories. Those are the good sign. When was the last time you saw B&N hawking some dreadful teen-angst story about pimples? Kids are reading again, and it's partly because of Harry Potter.
There is no reason to celebrate kids reading if they're reading poison.
That kind of elitist attitude suggests that you really should venture off-campus on occassion.