Newgrounds really was the golden age for web gaming. And, similar to early web, early mobile gaming also started out with nostalgia-worthy charm and heart. You're right that it's been hollowed out, but the same thing happened to web gaming after the Flash era. The social casino era is maybe its 6th reinvention, and its lowest yet.
Now that mobile gaming has been raced to the bottom and consolidated (and thanks to the dual tailwinds of AI making it easy to write code without engines and the web maturing in its 3d+networking capabilities) we're started to see a resurgence of web-based games - it's my full-time job now! Granted we still do rely on mobile apps (as web wrappers) for monetization, but that wall is crumbling rapidly.
The games were more polished by the time, but still quite wild.
Id wager (heh) that it's much more down to a lack of regulation combined with the normalisation of influencer driven get rich quick but pretend it's clever investing that exploded in popularity with crypto and wallstreetbets style influencer investing. Combine that with house prices being where they are and people get risky with investing as their hope outstrips their caution.
I don't think a few rounds of balatro or slotomania leads to that.
internet is not the only thin that suffers it. TV, music, its the same. Listen to what kids played music ,movies, toys etc. in 60, 70, 80, 90s up to today. you will see very sharp changes, first in how they occupy themselves and then in how they shape society -_- for their kids to go into the next dumbing down cycle.
(yes v cynical and black n white put. easier to word)
NG didn't have multiple 500MB downloads, buttons in the wrong place, pointless currencies. More importantly NG artists actually cared. I understand why Apple killed Flash, but what we got in its place is not better.