I have to agree with you. While talking about Dash 8 operation only, I remember the days before FMS / GPS when two flights on the same airway would never cross directly over/under each other,a few miles horizontally being the norm. It's quite common today and makes me wonder about an incorrect altitude - either by ATC or Crew - causing a head-on collision (OK, probably won't happen with TCAS - but is this more machine dependancy?).
As to automation, I find that most new hires are too dependant on the FD and AP. They have to be prompted to do a bit of hand flying - and most of them need it. Not forgetting the veterans who become lulled into complacency by the gadgets.
Don't get me wrong, when the weather is kicking, I'll use everything available and the automation makes my job alot easier, but on those clear days it's real nice to hand fly a raw data ILS.
So, is safety improved by the new technologies? Definitely yes - but when the technology fails, we will have to rely on skills that have gone rusty due to the new technologies.