Has Hollywood Lost It's Talent?

I've been watching old movies from the 30s and 40s lately, and have begun to see a trend; when an actor was in a movie back then, usually they had more then just acting ability. They usually sang or danced or played an instrument. They were good looking, emotive and skilled entertainers. These days, you're lucky to find an actor who can strum a few cords on a guitar while trying to look like they have more then two or three emotions. And don't get me started on the vast number of one-trick ponies in Hollywood, like the Celebrity Punchlines Adam Sandler or Jack Black. Obnoxious acting seems to be the way things are done in Hollywood now, and real acting talent is non-existent. Am I over-reacting, or does anyone else notice this as well?