No, I don't think games are worse.
Every era of gaming has had it's own separate focus, and games which excelled under those foci.
For that reason, I think it's silly to compare new and old games, as they oftentimes do not accomplish, neither by design nor by result, the same things. And I therefore don't play them for the same reasons, quick examples:
Planescape: Torment is one of the best stories I have played through, in terms of writing. The delivery and gameplay however is overall pretty bad. Bioshock on the other hand has mediocre gameplay and story, but it's delivery is simply astonishing.
Different games focus on different things, and whilst I think it's true that it's hard to find an epic story like that of Planescape: Torment around, it's a pretty hard one to top. However, in recent years, we've had gems like Bastion and the Stanley Parable, which explore some things more unique to our medium, in the form of narrative delivery.
If you go into games, with only a single criterion, or perhaps even just a pair of criteria, of what constitutes a good game in mind, then I think you're missing out on a lot of things which that game in question might be doing right. Of course, there is nothing wrong if you only enjoy games which fills certain criteria, that's all up to you, but that doesn't necessarily make those that don't, bad.
I personally enjoy games over many different genres: Torment, Portal, Terraria, Persona, Bastion, Painkiller, Dear Esther, Starcraft, Diablo and the list goes on. They're altogether different experiences and I think games would be the poorer if we were to focus on only one kind.