Kid toys started going down hill in the early 90's. Power Rangers were one of the last good toys.
I blame it on a few things:
First off Kids don't play with action figures as much as we did and I blame this on the fact that todays market Lacks good characters as toys. Most of your cartoons in the 90's look like they were drawn by 5 year olds. And we lack all the action cartoons that we uses to have back in the 80's. Can anyone really see kids playing with Sponge Bob Square Pants, Rugrats or Cramp Twins? I do admit things have been getting better lately when shows like Justice League and Teen Titans. But a lot of damage has already been done. A lot of damage was also done when the government passed the law that banned the 30min ad from TV, this in turn pretty much killed Saturday Mornings. Back when we had great shows like He-Man, Transformers, G.I. Joe, TMNT and Ghostbusters. All these shows were 30min ad to get us to go out and get our parents to buy us the toys. When he government banned these the studios no longer had reason to put money into making good shows. Luckly things have started to go back to the way they were in the 80's so maybe things will get better.
Second because of the lack of good toys most kids moved over to Videogames. When a kid has to make a choice between a game or a toy they will always go with the game.
Third most kids lack the same kind of imagination we did when we were kids, unless its handed to the kid in a form of a Movie, TV show or game kids today won't make the effort to use their imagination.
It is very sad how bad things haven't become. We can only hope that some how the damage can be fixed.
I miss having all those great toys. At least some of them make limited come backs.
The 2002 He-Man toys really rocked.