You are much more optimistic about this than I am.
My only real problem with the idea of another industry crash is the realization that the gaming economy is not exactly stable as it is. We've seen some major third party companies enter into some mergers and buy outs in the last few years. Hell Square had to merge due to one bad movie at a time when it was king of the gaming industry so a total crash may see the end for alot of major developers. Not to mention that some developers are forsaking their fanbase in favor of the new super casual market *cough* Nintendo *cough* and so fan loyalty is not where it used to be.
If the industry crashed, I see a lot of third party developers being bought out by corporate powerhouses like Sony, Microsoft, and EA. We would also see some massive takeovers and mergers that makes the ones from a few years ago seem trivial. It may even take awhile for a stable business model to go into practice. The gaming crash happened in 83 but I feel most people would agree that gaming didn't really start to recover until the early 90's.
I don't think its so much what games you play as much as the why. I actually play a large number of RPGs in comparison to other genres and I am all for increased difficulty. I do play the genre for story but I still recognize the genre as a game and I expect it to fulfill certain needs.
On the other hand, there are people like yourself who play the genre solely for story and the idea of making the game difficult may harm the flow of the plot. I personally cannot fathom this course of thinking (going back to my analogy of playing a sport with friends for company) but I feel that most would agree that a difficulty setting would allow us both to enjoy our games for our specific purposes.
I do feel that the shift to a strong narrative and storytelling aspects is a prime culprit in why gaming has become much easier in recent years but there are certain titles that fulfill both needs. MGS for instance offers an amazing story and some awesome challenges.