meh, still the thing is, as you've mentioned, YOU and others were providing most of the content you were playing with in the game. which is fine and dandy and i can't complain about. but thats the same with most games, you can role play and add stories, and join a role playing guild in probably in MMO and add your own content. plenty of things happen with big groups of players, weddings and stuff which, i don't want to be disrespectful to you, but isn't for everyone and personally i have no interest in doing either.
In general the idea that games are getting easier and worse is completely incorrect. you can't compare the game you liked the most of 5 years ago to the one you like the least now thats of a completely different genre.
no matter what they want you to believe "rpg elements" is a marketing word, as is quad core, and in the past dual core, and many other words that get used a lot in the press. stalker and bioshock are basically nothing like rpg's. being able to choose plasmids = rpg ness? in any general fps game you can pick up weapons and choose which you want to use, plasmids were no different. stalkers the same, med packs, quad damage pickups, artifacts, still a linear story.
oblivion, two worlds and a bunch of other games really are rgp's, and massively longer, with a lot more story than bioshock and other fps's. but that was the same as back then, for every deus ex there was a sonic game, for every UE mmorpg there was quake 1 online.
there are plenty of long rpg's out, coming out and will come out in the future, some will suck big time and some will be great. but bioshock and the like aren't replacing rpg's, aren't rpg's at all, and aren't stopping proper rpg's being released at all.
but go with graphics + huge worlds + long storys that are good and you don't see 10 new great huge rpg's every year, they are a rarer game to come by in general, and always were.
there used to be some fantastic point and click games, but when you basically don't have to do anything graphically, no real physics and no real engine it means you have massively more resources to focus on writing and storytelling which is great.
as to what i said before on not wanting to go back to previous unchallenging games, i've moved on and learnt. now space invaders isn't remotely difficult, i have entirely no interest in going back and playing it again when there are also easy games around now but with decent graphics and more varied gameplay. there are plenty of rpg's around that i could play with decent graphics, mods, storys, gameplay that i wouldn't go back and play point and click games now either.
likewise there are very very few point and click games made like they used to be, as game makers/writers/coders also get bored and move on. people started making simplier games but due to wanting a challenge in their work moved on and wanted to make a more complex game.
the overall issue is profits, cost of game and time taken to make. which means few studios are around that make the "great" games, and theres a whole bunch of crap inbetween those few studio releases. Then even those guys can get it wrong, for me personally oblivion was just dull and i never tried it with mods.
theres also the fact that i'd hate it if every game being released was a massively long rpg, or all point and click games. i LIKE that i can play some short intense action packed games with fantastic scripted sequences. call of duty and to a lesser extent the 2nd one was incredibly linear, almost no choice, very short but insanely fun. Atmosphere of the beginning of some of the battles in COD 1 simply can't be created in an RPG or without heavy scripting and controlling of what you can do.
one thing i'll say is i don't think there have been many good rpg's for a long time, but there are a bunch coming soon afaik. oblivion was for me crap, two worlds seemed crap too.