Centaurus
I think you have pretty much hit the nail on the head, however i would contend that it is actually a higher workload to hand fly due to the nature of automated flight decks.
When flying with the autopilot engaged the PF can make mode changes as required.
When hand flying all mode changes have to be articulated to the PM. Whilst that may sound simple, it isn't always.
Again, the days of disconnecting and pointing at the runway are gone. At the very least you have to call for the appropriate mode so that you have flight director guidance.
Any in flight occurence that requires an autopilot disconnect is most likely going to pop up on the FDR. When/if it does the Captain will be sent a please explain. If he has continued flight without appropriate flight director guidance it is unlikely that he is going to be patted on the back and have his exemplary flying skill praised. More likely he is going to be sent to the sim for some more training on how to manage the automatics.
It is a downward spiral that's for sure.