Ethereum miner's reward is:
- 2 ETH fixed block reward.
- All fees included in the block. Now it's on average 0.3 ETH fees per block, for the last half year it was sometimes more than 10 ETH. A year or two ago, it was less than 0.1 ETH.
The rise in popularity of Ethereum and DeFi projects resulted in a rise in fees. It's definetely good for miners — we earn 5-10 times more. It's bad for ETH users — they have to pay huge fees from $10 to $600 to transfer money.
The EIP 1559 update is changing the way fees are formed. Transactions will become cheaper and extra fees will be burned. For miners this means a drop in profitability in between of 2% and 70%.
Should miners be discouraged? No. Low fees will only increase the popularity of Ethereum, while burning fees will reduce the amount of coins in circulation and lead to deflation. All together this will raise the Etherium exchange rate to the moon. In an ideal world, miner's income in dollars would not desrease, but, on the contrary, increase.