So your saying that because Society has bred a bunch of wimps, [-]we should make life easy for them.[/-] they expect things to be made easier for them, so as a result business models have had to adapt to follow the consumer demand.
Not quite, but I corrected it.
Training agencies are not solely to blame for any perceived decline in standards. Ease and accessibility to dive sites has played a part. As you've pointed out, dive training included pretty rigorous physical requirements. Now we have several agencies that cater solely to people with disabilities. (and no, that is not intended as a slam against any of those agencies, it's merely pointing out their existence). Got a bad back? No worries, our friendly dive master will carry your tank to the boat, set your gear up and push you backward into the water. 30 years ago that was unlikely to happen, because diving was mostly for young, fit, men. Have a hard time swimming? No problem, there are a variety of underwater scooters you can choose from. People no longer have to be fit and in some cases agencies might face more liability by not training someone and getting hit with a discrimination suit.
Our (societies) desire to make things easier has affected our perceptions of things. Now everything needs to be "accessible."
IMO, the current trends in dive training is a reflection of the demands of today's society.