No, gaming is much better now
As a straight answer, the market is much more competitive; it's cheaper to play videogames now than it was before (N64 games cost, what, $80? Now AAA titles sell for $60, and there's so many that others are forced to sell cheaper).
Videogames are more mainstream, so they can be enjoyed by more people (think: guitar hero/rock band).
We still have access to a large share of the greatest games from past years, due to downloadable content, and Indie games are doing exactly what games were on the NES ages ago - innovating, creating unique experiences that are both cheaper to make and cheaper to buy (I buy more games off PSN than I do regular titles - if I had an Xbox, I'd buy more from Live, too).
There may not be as much creativity in PS3, Wii and 360 games as there has been in the past, but I'd say that's largely due to the cost of production. When you have to master a complex, 3D, HD capable system, there's more that you have to deal with, in terms of programming (I think). Often, developers will use the same engine to churn out games that often look and feel quite similar, as a result (Unreal Engine's one of them, right?). What made retro gaming so fantastic, was the level of freedom that developers had, due to the familiarity and (I'd say) simplicity of the systems they were working with. There were, what, 500+ NES games made? They HAD to be creative, in order to stand out from the crowd - not every game was great, of course, but most of what was on offer was amazingly varied, absolute fun. Games were shorter in length, too, so the games were often intuitive and easy to pick up and play for some fun every once in a while (you could say that's because controls were simpler, the NES only had 4 buttons, but I don't know if that's fair. The games were both well designed AND easy to play - hard to master)