Listened to your podcast.
I definitely agree that gaming has taken a nose dive. To me, the PS2 was the best gaming platform ever as it had the sheer quantity and quality of software that hasn't been replicated since (sorry, the DS isn't remotely close). Even if gaming does end up swirling down the toilet, there are hundreds of games available via MAME or PCSX2 or all kinds of past platforms out there that won't be going away. Even if the next gen turns out to be crap and the indie scene gets tiresome, there's still a wealth of options out there.