There was a lot of shit music back in "the good old days". Hell, a lot of it was the popular stuff at the time. So that hasn't changed.
But music is, I'd say, at a peak of creativity and inventiveness and is only getting better on the whole. You just have to stop listening to the top 40 hits or whatever is doing the rounds on TV or whatnot and actually go find decent music. Into metal? Isis, Neurosis, The Gersch (the are to sludge what Black Sabbath was to all of heavy metal), Skepticism, Ea, Funeral, Evoken, Sunn O))), Earth, Tool, Boris, Mushroomhead, the list goes on. Into more normal rock? Sigur Ros, Mogwai, Explosions in the Sky, The Church (been around for thirty years and still going strong and awesome), This Will Destroy You, Sorne, Serj Tankian, Matisyahu, Morphine, and so on. There's plenty of music out there that makes the greats look bad by comparison--I love the hell out of Johnny Cash, but a lot of those bands manage to make me feel some particular emotion much more powerfully than Cash tends to do (with a few exceptions, but that is the rule of thumb trend).
The internet has allowed any sort of music to be made and instantly find an audience. You just have to snoop around to find the really good stuff.