Errr, well I think trying to tie nostalgia to politics isn't a good idea. While there are older people here, to be honest at 38 it's not like there is some age where the social policies I mostly argue against weren't in place to some extent. After all I was raped by an older kid at the age of 6 in a residential facility, which would have been 1981 (an experience I have pretty much blocked out but still haunts me). It's not like I sit here and long for the good old days of the 80s before all these gay people were around or anything. (to take one of my more controversial opinions). When most of my solid opinions and political opinions I hold now formed I went from being a fairly forgiving teenager to a cynic in my mid-late 20s and 30s when I was involved in security and such. A lot of people like to criticize people like me for being stuck in the 1950s or whatever, but really I don't think many people are that old. I think it largely comes down to your life experiences and how much you get to see behind the curtain. At the end of the day I can probably fairly claim to be the least racist and anti-bigoted person you'll ever meet because at the end of the day I pretty much seem to wind up hating just about everything and everyone as sad as that is... but it does even out.
That said, the central point when connected to games is a fair one, except that I tend to agree with some of Yahtzee's earlier points from previous ZP episodes and articles more than this one. That is to say that innovation for the sake of innovation is bad, and there is no reason to take something functional and change it simply to be different. A point Yahtzee himself makes all the time in ZP with cute little cartoons and jokes, say about some dude replacing a metal helicopter with one made out of bread, and being surprised when it not only fails to surpass the original but fails in general.
See for the most part what Nostalgia comes down to is people longing for things that were good, but people decided to stop doing for no particular reason. There interest was there, it still is, just nobody does it anymore, and when they do it tends to be a half hearted effort that winds up failing because it's half hearted nature is obvious and drags it down (which ironically causes the guys who made it to neglect that kind of product even more). For example, while a lot of people HATE turn based RPGs, or deep RPGs with lots of numbers and micromanagement involving multiple pages full of numbers for each character, those kinds of games are perfect at what they do, there is no need for them to change, update, or add more action or whatever. They survived so long, and have so many people demanding that kind of game with new graphics and no real "simplification" or "embellishment" to the gameplay itself that this should be obvious. It's like the joke about "Chess 2.0" that Loading, Ready, Run did... some people hate Chess, but at the end of the day it remains what it is because it's pefect at what it set out to be, and still entertains countless people despite the haters. In a lot of cases the glow of "never was" isn't as strong as some people make it out to be, failures to resurrect old properties or style of product fail because they were half arsed cash grabs.
Turn based RPGs probably aren't the best example when referring to Yahtzee's point because he hates those, but meh, it's my rant.
The problem right now is the industry has gotten so greedy and unbalanced that it hasn't been able to produce enough games for different audiences. It only tends to aim at the biggest, most immediately profitable audiences and ignore all else, pushing ahead to impress the lowest common denominator.
See right now there is still plenty of room for say old school turn based RPGs, and a market that would make them profitable, and actually when care is taken, a steady source of income. Game companies however aren't interested in a fair profit for a fair amount of work, they want the monster profits of the next "Farmville", "Call Of Duty" or "Candy Crush Saga" so they alternate between cashing in on each other's work, current franchises, and experimentation which is more designed to find the next big mass appeal hit rather than to actually try and please the gamers they know are already out there.
I don't think Nostalgia is the problem, I think the game industry, and the way major niche audiences are neglected, is.