In hindsight getting out of the PS2 mindset was the worst thing that ever happened to gaming.
Outside of DualSense and faster load times(sometimes), no one's ever going to look back at the HD era and think of it as an 'improvement' in gaming.
I feel gaming has advanced in many ways, but has also regressed in others.
Modern hardware has given both creators and players more abilities than they had 20 years ago. Obviously, beefier hardware allows for games with grander, more detailed worlds, with more "realism" than ever. Digital distribution and inexpensive development tools have made game development and publishing more accessible to individuals and smaller teams. Players have greater access to a broad variety of games encompassing large and small scales, and more avenues to access and play those games on computers, consoles, and mobile devices.
Game design itself is (in my opinion) in a bit of a rut, at least as far as the large-scale productions are concerned. A lot of discussion here and other forums focuses on the flops and failures. However, if you're willing to look, there are still some true gems being produced. It's good to celebrate the success stories.
I love the games of the PS2 era. I've said several times recently that I love looking forward to seeing the PS1, PS2, and PSP games that get revived on PS4/PS5. I want to see those and other classic games preserved and brought to modern platforms, so longtime gamers can get another dose of nostalgia, while new players can be introduced to these games for the first time. At the same time, I love modern games that are fresh, fun, and easily accessible...games that don't feel like "work", but actually feel like "play". Believe me, these games are still out there, if you take time to look for them.
The mindset never actually went away...it's just been been diffused and redistributed through different avenues. Your next game of choice might not be on a disc or cartridge on the store shelf, but perhaps it's a click or two away on a digital game store. It might not be from some massive publisher or some loudmouth prima donna with a huge social media following, but rather from some passionate new upstart that made the game of their dreams and would love for you to try it. Those are the types of developers and games that we should promote and celebrate.