This kind of thing is cyclical. Biggest companies buy each other out after failed projects meanwhile small devs will grow from the Wiiware/XBLA profits. Change is good. So no gaming isn't doomed in the way of the '80s collapse.
EPIC gaming drives me nuts too but it is partially a product of generation change(Anyone remember those super short but 'Pretty' PS2 games the first year). Another problem is the current obsession with online. Beautiful 1 player games like Metroid get marked down in reviews for not having Halo style online play. This will wear off as all new advances in video games do so that online is used by games but it is no longer and automatic win or loss.
There will always be 1 player games but I think we will see a balance. Less RPG as the Japanease tastes keeps moving casual but less 5 hour Epic fests as budgets break devs.
We are also at a crossroads of gaming where proven properties are failing and a lot of new IPS are being pushed. Sequelitis is winding down. Unfortunatlely dev think they need to spend as much on the next big thing as they did on the last big thing.
Finally and most importantly Nintendo saw this coming by a mile and is steering the Wii far around this mne.
Final* Word on Game Delays:
The game will not be any better or include more content then planned. Any commnets that say so are just PR hogwash to make you feel better for having to wait.
Delays are due to lack of proper resources, skill, or adequate planning by the developer.
Do be thankful that they have enough respect for you to delay the game and maintain its intended level of quality.
*naznatips is exempt
