People are looking in the wrong places. This generation has plenty of talented artists, musicians and songwriters.
José GonzálezJoshua RadinJack JohnsonJason MrazJohn Butler TrioTo name a few. They're all wonderful singers, excellent songwriters and brilliant musicians.
Not to mention some more mainstream bands like Coldplay and Snow Patrol. Yes, I know they're popular and liking popular bands apparently isn't what's cool anymore but they're popular for a reason. It's because they're bloody good. I've seen them both live and I can't fault them, they all played their instruments perfectly and the vocalists weren't off key. They are talented.
On the other hand, I took my father to see Status Quo a year or two ago and they mimed EVERYTHING. I'm not even joking, the guitar, bass, drums and vocals were all mimed and everyone noticed.
Yeah I'm definitely on the newer side. I like very little older songs. I'm a big fan of Abba, Paul Simon and The Monkees mind you. There are a few other gems lying around on my iPod like Don't Stop Believin' but for the most part it's newer music. Not just acoustic like what I linked above, either. I listen to a lot of Daft Punk and I'm not afraid to admit I've got Ke$ha's album which is growing on me.
It obviously comes down to taste but claiming a whole generation is talentless ("with a few excepetions" - nice safety net) is absurd. Even if you don't like the more modern types of "electronic" (for lack of a better generalization) music believe it or not it does take a certain skill to put together and I'd be surprised if anyone on this forum could match Basshunter (not the international versions of his songs, they're terrible adaptations of his Swedish versions) or Daft Punk's technical expertise when it comes to creating a song of their genre.
Edit: just noticed all the names of the artists I linked begin with J heh ;3