Steve :
Your observation regarding the lack of expertise in aircraft handling is not unfounded.
I also have observed this downward spiral in piloting skills that is all to evident in aviation..............My thoughts on how we arrived at this situation are much like yours, liability is at the root of the problem.
When enough checks and proceedures are dove tailed with regulations that protect the regulator you end up with the mindless zombies evident in far to many aircraft, slavishly adhering to SOP's and like monkeys moving controls in rote learned fashion............ Oblivious to any thought process or skill requirement.
There, now I will step down from the podium and await the enevitable replies.
Chuck