I played FO1 & 2 shortly after they were released, so I was probably 17 or 18 when I played them. I probably failed to appreciate just how awesome they were back then, but I really enjoyed them. I just naturally assumed there would be a FO3. Years later when it finally came out and I got around to playing "Fallout 3"... Ugh, I cannot describe the utter disappointment. I only saw a few vestiges of what I loved about the first two games.
Anyway, point is, computer games have changed a lot since then. It is now the norm for RPGs to have features like quest compasses and journal entries that tell you exactly where you need to go / what to do*. In the modern RPG character building is very forgiving... The skills & stats (if the "RPG" even has them) you choose to focus on, don't matter much... and with a bit of grinding you can probably make yourself a god at everything. And success in combat tends to come more from the player's reflexes and twitch skills than from tactical thinking and effectively building a character / party.
Modern mainstream RPG deisgns takes Hand-holding, dumbing down, streamlining- whatever you want to call it, as a given. AAA RPG developers seem to make their games idiot friendly. They keep requisite reading to a minimum. If there's dialogue choices, you'll have a Mass Effect-esque dialogue wheel, and the dialogue is all voice acted. Then the player just follows the arrow and gets to new action sequence. Lather, rinse, repeat.
I don't think the problem is necessarily with the age of the players... It isn't that kids these days are getting dumber as a whole (average IQ has been rising steadily since the 30's; see Flynn Effect). It has more to do with the way the industry has changed. Video games used to be a pretty niche hobby just for nerds, but now it's huge. Big PC exclusive video game releases are relatively rare; from a purely business perspective, why develop a game for just PC when you can make a multiplatform release and have a much bigger potential audience?
Many PC gamers believe the console audience tends to be more casual, thus preferring a streamlined action game with RPG elements to a hardcore CRPG that requires players to use their head. Right or wrong, unfortunately it does seem that the market for true CRPGs is relatively niche and probably always will be. An AAA budget CRPG would probably be a financial failure.... Even if it had the pretty graphics, there would still be casual "Action RPG" fans turned off by "boring, slow-paced" turn-based combat, all of the number crunching, and the possibility that you could make the game very hard with a bad build, i.e., trying to make a jack-of-all-trades character.
However, it's still (theoretically) possible to build a decent CRPG with a mid range budget. The first Fallout game reportedly had a budget of about $3 million (adjusted for inflation, that's closer to $4 milllion today). Incidentally ~$4 million so far seems to be the maximum that a CRPG has raised on Kickstarter (Torment: ToN). Crowdfunding and early access have helped CRPG developers make games that few, if any publishers would be willing to fund.
*None of this to say that all older RPGs are necessarily more fun to play then modern RPGs etc. While quest compasses insult the player's intelligence and detract from the fun of exploration / figuring out stuff on your own, wandering around aimlessly looking for an NPC, item, etc. that you need to complete a quest probably isn't much fun either. It needs to be done right; if you don't have a quest marker, then you should be able to ask NPCs for clues, etc. so you're not stumbling around in the dark.
TL;DR: No I don't think it has much to do with age, or the current generation. Lots of people are morons, but that's always been the case. Businesses who want to make lots of money are going to cater to the stupid people, because that's less risky. Smart people are probably more likely to put up with dumbed down content than a dumb person is to tolerate stuff that confuses or bores them.
And to be fair, if a gamer has only been exposed to mainstream mediocre RPGs like recent Bethesda and Bioware releases, then you can't entirely fault him / her for not looking for something deeper. Their frame of reference for what an RPG is is just sadly very limited. I would say keep on encouraging gamers to play the classics and recent "old school" CRPGs like AoD. Most of the time it will be in vain, but maybe you'll get lucky and they'll be eternally grateful that you introduced them to a real RPG.