The bad games aren't pushing out the good games. More games means more good games.
Even if we're judging proportionally, you can't count games that no one is playing. If I give my toddler a harmonica, does that make music worse? Only if I force you to listen to it.
That top 100 list kind of proves my point, because a lot of those games are excruciating to play nowadays. I loved Final Fantasy 1 when that was the only RPG I owned, but it would be unplayable by today's standards. Because today's standards are much, much higher.
In terms of games that are worth revisiting because of their historical or artistic significance? There are plenty in that list. But in terms of games that would be good by today's standards? I don't think 1/3 of it makes the cut.
Yeah I don't have any idea what you're referring to. There are still a huge amount of new and innovative games every year. It's possible you're just not playing them.