My argument is there are fewer and fewer year in and year out.
When there are far more games being made in the first place, good and bad, I do not think you are correct at all. There are still tons of great games coming out, but you don't seem to want to look for them as you've already shot down previous comments bringing up critically acclaimed modern hits.
I think nostalgia has you remembering the best games of the past, forgetting about all the slop that used to come out back then too, and losing perspective of the actual time scale in between those hits. If you compare the very best games from a full decade to just the average game that came out last year, that comparison will be very misleading.
Then it sounds like the real issue here isn't that the narrative-driven games you talk about in the OP don't exist at all, but that these games just aren't being laser-targeted at whatever specific and narrow set of tastes you have.
And honestly, to an extent I do get where this kind of frustration comes from. I've felt like my tastes have narrowed with age too, and I have a bit of a chip on my shoulder about certain genres that have completely faded from relevance. But I've had to come to terms with the fact that this isn't an industry problem, it's a me problem. Just because my kind of specific niche favorites don't get catered to doesn't mean that good games don't exist at all.