The bar has been lowered because the average person values convenience over absolute quality. "Good enough" is good enough. The average iPod-wielding hipster looks at people like us and considers us insane. The average person may love music, but for different reasons. They may adore their favorite artist, but they don't love the sound the way audiophiles do.
When I was in high school, music was not a hobby; it was a social classifier, a method of dividing the kids up into different cliques. One of the criteria that inevitably determined where you fit in the high-school hierarchy, was what kind of music you listened to.
Enthusiasts in any hobby will fiercely pursue the best of the best, but when something doesn't interest them terribly much, they are far more apathetic about it. I am into computers, but it's not my primary interest; I don't have top-of-the-line equipment, and given the choice between spending a few grand on a brand-new high end computer or something like an L3000, I'd go for the L3000 any day of the week.
Others I know cheerfully listen to their iPods on the stock buds or cheap Wal-Mart headphones while they spend thousands upon thousands on ridiculous and over-engineered computer systems that provide far more power than they'd ever need.
It's all subjective, and when you're beating around the subject of the pursuit of excellence... the enthusiast is always the niche market. For most people, good enough is good enough. I don't think it's going to change any time soon.