Literature will not change significantly. The reason for this is that literature is not primarily about communication but about expression. Efficiency is not important, but effectiveness is. Literature is all about effect and presentation. People have favourite writers not necessarily because of what those writers say, but how they say it. This is even truer for literary forms like poetry. Poetry is not efficient and often not very precise, either - it will be largely unaffected by quicker easier communication, because it is all about the rhythm and timing of delivery, and experiencing that. It is possible that there may even be a resurgence as people seek respite from fast frenetic communication. Singing is a bit like poetry, but can also have a social dimension - it is difficult to see how mental communication could replace that. A mental choir?
Verbal communication is likely to change, as it is already doing. Direct purposeful communication will benefit from better efficiency and less opportunity for misinterpretation, since verbal communication would take more time and is probably more prone to miswording, mispronunciation and mishearing. Mental communication will take a bigger portion of our daily communication - but that is inevitable, since it takes effectively none at present.
However, some verbal communication is more social and otherwise pointless - greetings, for example. A flashed thought of recognition may express a greeting efficiently, but its brevity itself is likely to make it even more pointless and an unnecessary interruption to faster more meaningful messaging.
Verbal communication will continue, but is likely to become more intimate. It will be a personal informal communication with people that you care about, partly because it is more physical than its mental counterpart. Also because it takes more time, and taking more time on anything (non-urgent) with someone you care about is important.
The other consideration is that verbal communication can be overheard and can involve other parties, either intentionally or unintentionally. It also informs - how you greet someone can tell someone else a lot about who that person is and what their relationship is to you; it also informally introduces them. It is unclear whether telepathy could/would work in a similar way - can you overhear someone else's thoughts not directed at you? Can you accidentally, or deliberately, allow someone else (possibly miles away) to overhear a conversation, and can the other person in the conversation know that you are doing that?