Personally think the major problem lies within the fact that modern games mostly try to appeal what's referred to as "casual gamers".
Games used to be made for Gamers. The real type of Gamers.
Today games are made for a broad spectrum of people, many of them playing games out of mere entertainment in having something to cheer them up a bit.
They don't want to fail, don't want to be forced consequences of their playing style, having to deal with misjudgements ingame and worst, reloading.
Just compare Morrowind gameplay with Oblivion/Skyrim.
Morrowind was a game you could fail, you've been able to kill Quest-NPCs needed for the main storyline, you had to face the fact that chosing a side does indeed have severe consequences.
Now look at Skyrim.
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