I'm definetly of the opposite opinion.
Retro-gaming is better than it ever has been with Steam, Wii Virtual Console, and XBox Live Arcade. And the indie scene is so much better than it was in past generations.
But as for big-budget, mainstream console games, I don't think so. There are exceptions of course. But the majority of games are just too freaking easy. Most games want to hold your hand, tell you exactly where to go, what to do, and how to do it; and give you regenerating health to boot. It drives me nuts. It's like you're forced to play it a certain way. There's no challenge or sense of exploration and discovery anymore.
And I hate how there is so much more of a focus on multiplayer OVER AND BEYOND single-player campaigns.