Both CrashGirl and Patrick made a lot of good points.
CrashGirl, Patrick is very right with you not being able to judge modern gaming too well without testing those games he mentioned. It was a bit surprise you hadn't played those as I tend to agree with you quite often.
Now I don't nearly as long gaming history as you can CrashGirl have, even simply by my age. I had PC back in 95 and 96 (original Red Baron was luv ) but apart from watching elder ones playing Land of Lore my contact to RPG's was nil. Then I got playstation, fell in love with Ape Escape and MGS and was happy (mostly) console player for many years. Then in 2000's I got proper, powerful PC and got intrigued about RPG's after hearing about some upcoming game named "Knights of the Old Republic" (I was huge SW fan). Idea of RPG's started to fascinate me (for the record at the same time great classics of adventure games did too) and I decided to dug in this previously alien genre.
Because of this I've always considered my views on older RPG's to be "pure" in the sense I can't be blamed on being nostalgic. Therefore it is quite striking my Three Favourite Games of All Time are PS:T and Fallouts. Games ranging from early 90's to beginning of 2000 are rather dominating on the list. There must've been some magic lost in the way then.
I really think that from today's POV 90's were the Golden Age of gaming. Machines got enough raw power to generate and uphold more complex and bigger worlds and gamy systems, innovations were plentiful as mushrooms in the rain and great definining titles of genres were published; RPG's got titles like Fallout and Ultima 7 and Baldur's Gate made the genre profitable again, adventure games got their glory days from Sam & Max and Monkey Islands to Grim Fandango, Doom, Quake and Half-Life came out, real internet multiplaying began...
Maybe there'll be similar, even greater period from 2010's onward, who knows. I won't deny it nor I claim innovations are nonexistent in modern games or that their by default inferior to older ones, but I can't help but feeling like gaming industry is currently in its "80's". Sure, 80's had some original, innovative and "soulful" stuff, but they were far less numerous and more under the radar than in 70's.
Change from Golden Age of music called 60's and 70's to horrible commercial, overproduced and stagnant age of 80's... and change from introspective, artistic era of Hollywood called 70's to 80's cinema that was defined by blockbusters and all worst aspects of Hollywood...
I feel 90's to 2000's in gaming world is in current light equivalent of of these two changes of decades in other industries.
I wonder when in comes equivalents for alternative rock masters like REM and Pixies, unabashedly powerful GnR and golden days of Metallica that shovels away bad aspects of modern gaming like those bands did to soulles music that dominated most of the radio waves.