It is rose tinted glasses. You get the same things said about classic movies/television/music, you name it. It's because the crap gets forgotten about and the good stuff sticks around.
The way some people go on you'd think the 60s charts were nothing but The Beatles and The Who. There was a lot of shit back then and there's a lot of shit now, no doubt. For every Elite, there were 100 shitty Centipede clones. And Centipede was shit. So there.
Apples/Oranges.
This theory works fine if you don't grade on a curve, but you kind of have to.
Sure, that was a lot of musical shit in the 60s just like there is now except the good was a lot better than it is now.
There simply isn't the contemporary equivalent to The Beatles, The Who, The Yardbirds, Cream, Dylan, The Birds, The Doors, The Kinks, Herman's Hermits, CCR, Buffalo Springfield, Hendrix, Big Brother and the Holding Company, I could go on all day.
The Bell Curve has become gnarled, tangled, and strung so far out that it doesn't offer any real fair comparison. People ignore the shit from the "Golden Age" of rock, not because they've forgotten about it, but because it's fucking irrelevant.
One can make the same argument about 70s and film ... or the 90s and video games.
And yes, there were a lot of Centipede clones, and Pac-Man Clones, and Asteroid Clones, but the market was a different entity back then; "cloning" was a phenomenon that pretty much died out by the third generation and is completely different from the rehashing that goes on today.
Besides, t really isn't a very fair comparison. Back then programmers had both a limited scope of knowledge and a limited source of resources and tools to work with. There's only so many ways to reinvent the horse and buggy. Now days they have everything they need to build an Enzo Racer but they're still giving us Pintos ... except now with fins and a nice set of new rims.
Also, those clones were, even at the time, pretty much buried in the abyss of who gives a shit?
Now days you have games like the annual sports games, Pokémon Whatever, the Fallouts (Insert Western RPG here), the countless FPSes that, aside from Doom 3, haven't made any real advances in a decade, Final Fantasy remake/sequel #359, and the countless MMORPGS that all do the same thing all at the top of the food chain. They are the most popular and highest sellers--a far cry from "Bob's Cento-Creed 'O Fun."
The production companies have figured out that they can put this stuff out there and people will eat it up. It's cheaper to do things this way which, obviously, nets them a lot more cash. Because of this, they have no real reason to push the envelope anymore.
The Wii is a perfect example of this. It presented an opportunity to drastically push the medium forward, but a side from a few novelty niche games made by Nintendo, it's full potential has all but been completely ignored.
But during the better part of the 90s and the first half of this decade, there was really a surge of ideas. It was actually see (and follow) the path of evolution. Things seemed to progress exponentially.
Heck, in the recent "Best Game Ever" contests on GameFAQS, I think eight of the top ten games ended up being PSOne/Early PS2 era titles. And frankly, I don't think that has anything to do with some misguided nostalgia. They're just better.
Why do you think backwards compatibility has become such an issue with the PS3?
I also think it's a pretty safe bet that games like Metal Gear Solid, Final Fantasy 7, Zelda OoT, Resident Evil, Kingdom Hearts, Castlevania SOTN, etc. will remember and revered for years to come, their spin-offs, sequels, and remakes will be forgotten in a decade.