I think there have always been problems, and many people have a rose-tinted view of the past. No, parents in the 50s and 60s didn't ignore their children in favour of mobile phones; but many mothers did send their children out to play unsupervised whenever possible, so that they could get on with their chores (more time-consuming in the days of larger families and fewer labour-saving devices) or just watch TV or listen to the radio 'in peace'. And many fathers managed to get away with ignoring their children almost completely, or couldn't interact with them much even if they wished to, as they had to work long hours away from home.
As regards it being good for babies to be cuddled and talked to: yes, this seems obvious nowadays, but quite a bit of medical and childcare advice in the past was that babies should not be given too much attention; that if they were, it would ruin both their character and their digestion; and that they should be fed regularly every four hours, and ignored if they cried at other times.
However, I would agree that things are worse now than a few years ago. This is largely, I think, due to economic decline. It's not just cuts in services, though these play a part. It is often said that young people today are likely to be the first generation in a long time to be worse off than their parents. Their younger brothers and sisters are likely being even more affected by the stress, insecurity and deprivations.
FWIW, studies have shown that until the end of the last century, IQ scores were steadily rising (the so-called Flynn effect), but have plateaued or slightly decreased in developed countries in the present century, possibly related to the effects of the banking crisis.
And lockdown and its consequences have doubtless not helped.
Also, children spend far longer in formal education than in the past, making certain problems more noticeable. Early preschool education is an excellent thing; pressures to meet assessment standards at 'baseline', the Year 1 phonics check, and Key Stage 1 SATs at age 7 are less excellent, and may result in negative attitudes to school in children who are still too immature to deal with all the pressures to sit still and study. (Not to mention all the pressures on the teachers!) And in the past, children who were relatively immature, poor at sitting still, and not fully toilet trained might be kept at home or in a nursery setting until well into their 6th year; nowadays this is more difficult. At the other end of the age scale, pupils, who in the past might have left formal education at 15 or 16, now need to study and take exams until 18. This is a very good thing for many, but it does mean that some anti-school, hormonal, aggressive adolescents, who in the past would have left as early as possible, now have to stick around, and may be disruptive, and bully other pupils and even teachers. It also means that socially anxious pupils, who don't cope well with the bustling school environment, and may be bullied by the former type of pupil, and might previously have voted with their feet, also have to stick around, often to the detriment of their mental health. All these issues may improve as schools, policymakers and pupils themselves find ways of dealing with the changes (just as they adapted to the introduction of universal secondary education in the last century); but right at the moment, there are definite adjustment problems,