Kinda speaks to how the 'decline' everyone feels is located not so much in the creatives, but the shadowy financing part of the industry, no? One can debate the vagaries of gameplay mechanics ad nauseum, but the fact that one of the biggest drivers of modern AAA design was financed literally by one of the biggest financial swindlers in modern history is... much more telling.
As an outsider I have no way of confirming it, but from what I've read and learned over the years, it seems to be so.
I would assume the problem is on both ends, because for instance so much of what you see in the non-commercial art being shared has the same derivative, generic style to it that appears in so many video games, while the reading habits of people generally is being transformed and / or diminished by emulating the attention-grabbing methods of mainstream online journals and social media posting, which is itself mimicking the behavior that is practically enforced following the adopting of the deceptively "free" internet content advertising model popularized by Google.
That being said there seems to me to be no question that creativity is stifled by the economic concerns of studio financers. It seems that the trends in the video game industry towards simplicity, towards challenging dexterous control response as opposed to challenging the strategic mind, appealing to the herd at large roughly coincided with the introduction of Google and ever-decreasing computer prices. This is also approximately the same time that people like Altman caught wind of the potential market on the horizon and got involved.
In the early days of home computers, there were several reasons for and economic incentives to creating games which required patience and strategic thinking, because many of the people who owned computers were the very kind of people to whom these things are ideally marketed. These days games are heavily criticized for being extremely challenging and controversial if difficulty modes are added by request. Imagine something like Wizardry IV in todays gaming milieu? Imagine any game being released without tooltips and tutorials?
Nearly every single one of the major publishers and developers are eventually exposed as scandalous and to be run by utterly incompetent, and frequently sociopathic personalities. In Bethesda's case it was downright felonious, and an increasing number are joining that category. Art reflects the culture in which it is produced and our culture in decline sees our collective psychology mirrored in the garbage we consume.