Literary vs Clarity -- Is one really at the expense of another?

Classic Literary and Contemporary Literary can arguably be two different genres. I think the problem with clarity lies with writers who live in our times, used to our language, yet strive to emulate the language of 17th, 18th, and even 19th century American and British authors. 

On top of that, they take the "show, don't tell" mantra of literary writing to an extreme and get lost trying to sound sophisticated or poetic in their prose. When the words get in the way of the story, then you have a problem. 

Amy Tan, Tim O'Brien, Toni Morrison - These are contemporary authors whose works use clear language. Morrison uses speech patterns and diction of the old south. Tan utilizes her bi-lingualism to craft pieces that are at times meta. O'Brien is clear, concise, direct - like a soldier. But you don't need to read a passage 4-6 times before seeing the big picture. 

The "too simplistic writing" may not be a critique of the language or syntax used, but rather a critique of how the story is treated. Let's take a story about a girl who runs a marathon. The simple story begins at the start of the race, follows her through the course, and then as she crosses the finish line. She did it, we're happy. 

The "literary" version may have you be with her at the start - feel the cold air, excited hum, etc, etc, and then flashes back to the point in her life where she started training... how did she get there.  The race starts... and as we follow the race, we have a series of flashbacks that reveal her process. Turns out she's a survivor of a devastating illness; she suffered an injury or setback that prevented her from running before; etc. When she crosses the finish line, it's the ultimate climax for her story and journey - defeating the odds, overcoming a bad situation, perseverance. It highlighted the character's growth and showed that the race represents so much more than start to finish. 

If you immerse your readers in with enough sensory details, but with the clarity of language that doesn't detract from the story, you'll have readers who are emotionally invested in the growth of your protagonist. To me, that's great writing.