You are correct that the "crop" is currently in the process of being fully replaced by a whole new type of seed that will grow up knowing absolutely nothing of the games we grew up with. The generation following generation Y (what do they call them, generation Z?) are already removed from these games, but it will take another generation before these particular people are in the position of making games for themselves. Even the youngest designers of today still have (brief) very early experiences with the games from before the "industry revolution", or the "decline" as we mostly call it.
Perhaps fortunately, the very first generations of professional game developers (85-95) are actually not that old yet, so they will still be around for a number of decades, and in that presence they will hopefully be able to pass some things on to the new designer generations who have no experience at all from last century. We all know kids rarely listen to older people, but there may just be a few who are entertaining enough to catch the ears of the new youngins. Then again, who from that era is still around that is worth listening to? I can't think of any who haven't declined in their offerings.
But it is going to get much worse before it gets better. Just imagine it, very soon there will be an entire generation that is once-removed from ANY interaction with the games and the way our games were before the industry had fully transformed into what it is now (perhaps "pre-Oblivion" might be seen as a very significant turning point, for example). It will be the ONLY game history these generations understand first-hand. This will continue to happen until that generation gives way to a new one (maybe second, maybe third) who are unfamiliar with the way games were made two or so generations before them. They will start trying to change the landscape and "innovate" in their own ways (as young folk do, when trying to make their mark in a world already conquered) and will rediscover older philosophies, believing that they have had new original ideas (which is what we need them to believe in order for them to run with it). But because they will only know these simple linear movie games, they won't recognise the characteristics of earlier games as "old fashioned". That will help them adjust to the idea (again).
This is a phenomena we can see in the modern evolution of music, although it won't be quite as fluid in the game industry as the music industry is, but hopefully more integral.
The role of the PC, on the other hand, well it will most likely grow again with all of this streaming and cloud crap, but probably decline again some time after once consoles start to integrate those capabilities (things like taking your console home without buying any games at all, plugging it in, connecting to Microsoft store with your electronic credit/CC, buying any game you want while you're still at home and playing it immediately then and there without all the other process).
And for the record, I have never owned any kind of console and have no intention of ever getting one.