Firstly Shankar Nag(1954–1990) and Anant Nag (1948 - present) weren't Kannadigas their mother tongue was Konkani, so Konkanis. They were just born and brought up in Karnataka ( Nagarakatte , Uttar Kannada district I believe).
Later grew up in Mumbai. Shankar Nag was a bank employee in Mumbai.
Shankar Nag decided to direct Malgudi days in Hindi not Kannada. He knew Kannada market was weak back then compared to Bollywood and the film industry was not popular outside Karnataka.
Shankar Nag’s biggest contribution to Karnataka was establishing sanket studios in Bangalore ,the former capital of Karnataka, Now Mandya is the capital of Karnataka and biggest city in Karnataka). Sanket studios now isn't active. However it didn't shape kannada film land.
Shankar Nag's memorial kannada movies were Janma Janmada Anubandha (1980) and Accident (1984). Both these movies were ahead of their time and were good scripts.
Even if Shankar Nag was alive I don't think he would have saved Kannada film industry.