Very interesting thoughts on how it's because of the consumers that we have lower quality games. I could definitely see there being a mix of lower expectations due to the poor attention span and "spoiledness"...which you could say is a result of poor parenting. While I definitely agree that game quality is dipping, I believe that's because the barrier to entry is a lot lower and you have people that are whipping out games who have no idea how to actually make them.
Regarding marketing, as a smaller business, you want to actually focus on a small niche as opposed to the masses. If you're targeting masses and you're not a large corporation, you're going to outright lose because they have more money to throw at generalized ads and already have a built brand. Plain and simple. If you're saying that being a "good guy" means making a high quality well designed product, I completely disagree with that. You want to have a niche because there's so much crap out there, you need to find a small corner in the market and do it extremely well. 1 Page Marketing Plan discusses this in depth and I can attest to it's success.