Came across this excellent video essay. It's actually very thoughtful and doesn't focus much on the current state of fantasy, rather using it as a jumping off point for exploring the history of fantasy and its mythological, anti-modern sources.
He argues that fantasy is in large part a reaction to the modern, rational world, as seen with Lord of the Rings circling back into northern European mythological roots.
Recent attempts at fantasy, e.g., Rings of Power, fail to capture any of the essence of what the fantasy genre aimed for when it had defined good and evil clearly and evoked medieval vernacular. He cites this quote from Book of the New Sun author Gene Wolf:
"There is one very real sense in which the Dark Ages were the brightest of times, and it is this: that they were times of defined and definite duties and freedoms. The king might rule badly, but everyone agreed as to what good rule was. Not only every earl and baron but every carl and churl knew what an ideal king would say and do. The peasant might behave badly; but the peasant did not expect praise for it, even his own praise."
-Gene Wolf
RoP's showrunners argued that villains believe they are the heroes of their own story, but that completely contradicts the mythological perspective of LotR, where hero and villain archetypes exist in that pure, clearly defined, pre-modern sense. “The writers think they’re adding the dimension of psychology when they’re actually subtracting the dimension of symbolism.”
Also, he discusses Julian Jaynes. He argues that in The Iliad, Achilles in a literal sense has no free will--he is pulled one way or another by the machinations of the gods. But Jaynes argued that the motivations of the gods are a proxy for his consciousness and internal struggles. Good fantasy likewise utilizes that external symbolism to explore the human condition. That is also lost in recent fantasy attempts, which instead have modern-world character motivations and discourse.
Anyway, give it a watch and let me know your thoughts.