I believe technically games are getting better and better. I imagine, it must be very hard to keep coming up with fresh ideas for an industry as diverse as gaming. If a game is done properly nowadays, it's far better than most old games.
Usually people just want to think they had better games back in the days they were toddlers. If we think about it, (you are going to hang me for this) Half Life didn't really have a groundbreaking new idea or a truly unique story. Aliens and marines, multiverse travel, an accident in a hi-tech facility... the list goes on. Nothing truly outstanding. Of course, it was all done in a whole new way and I really like it. But I still prefer Crysis or Call of duty 2 to it. Why? Because they are much nicer to play.
Now hold your horses with chopping me to tiny pieces for comparing Half Life to Crysis. First, think about it. In its time HL was outstanding, revolutionary and advanced. Wen we really start comparing the two, without the hell bent nostalgia attitude, Crysis is a more advanced and innovative game. Many people say it hasn't got a story. I admit, the focus isn't on the storytelling, but did HL have a great epic story? I wouldn't say so. In terms of gameplay, nearly any of the newer PC exclusive FPS games thrash HL. And it it's fun and games you're looking for, the nanosuit offers hundreds of ways to complete the game and fool around. And if explosions and overblown action isn't your thing and all you want is realism, I wouldn't look at HL: a physicist with no military training fights off battle hardened soldiers and climbs ladders using only his feet. I'd say the newer the games get, the more realistic they become.(Personally I believe the people who whine about Crysis being nothing but a showcase are the ones who cannot play it with their own computers that will only run HL2 on low graphics. Don't take offense, please.)
Altogether I would say games are getting more comfortable and fluent to play (for example, having a separate key for throwing a grenade, and not having to choose it separately), looking around corners, going prone and using the environment for your benefit.
Because the big money men have gotten hold of the gaming industry, the purpose is to make lots of money. And the big masses of baseball cap wearing, beer drinking console gamers will buy anything with lots of explosions, guns n' stuff, it's no wonder the majority of games have the focus on blowng things to tiny bits. The sort of thing you can high-five to when playing with some friends. The creative game designers, the sort of geniuses who made Planescape Torment, are forced to work for the big money men since that's the only way to make a living in the business. Classic case in point is Alan Wake, which was supposed to be creative and unique. Along come the money men with their XboX and plans for big sales. No more cool free roam horror/adventure games from the creators of Max Payne.
Some game studios do fight back with creations like Bioshock, The Witcher and Mass effect. Truly awesome games with new ideas and interesting non-linear storylines. Too bad they're often buried underneath the mountain of half-arsed action FPS explosions mania games. Good games are still baing made today, despite the rants of the nostalgia-purists. You just have to know where to look.