It's not "bad". Due to more capable hardware, there's more realistic options available for game designers if they want to put the work into adding that to their game. It's a gameplay mechanic being "upgraded" from simple to complex. That being said, there's still fun to be had with simple gameplay mechanics when done right so the term "upgraded" is used in a technical sense and may not result in a more enjoyable game.
In my personal experience, while playing Ninja Gaiden, you want infinite guys to be coming at you so you can blast through them. While in an FPS, people's shooting skills have made it so infinite guys coming at you is not be enough to hold an interest as it's *aim for weakpoint* *shoot* *repeat*. With so many FPS games out there, people are looking for the continuing evolution that makes one game worth buying over the other. It all goes back to personal preference, but as the majority of people prefer the more realistic enemy behaviors there's going to be a movement away from the classic mechanics.
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