Totally agree 100% from my experience!
When I did my engineering degree at Manchester University in the early 80's I was sponsored full-time, studied full-time and worked my pants off to ensure I got it. I wasnt partying hard as my future employment depended upon it. Although not the sharpest knife in the draw I got my degree which was "exam" based and hard work to achieve. You knew your stuff or you didn't -- but it wasn't a 1st, those were reserved for the really gifted students!
Wind on 20 yrs and I'm again back at university. This time I'm studying part-time (in my own time) whilst balancing work, outside life, paying a mortgage, raising a family etc ... I'm struggling so I deliberately do the bare minimum work to get thro' : if it says a minimum of 1,000 words they get 1,000 words, if they recommend 10 hrs study I spend 8 hrs!! I do the exam and expect to really scrape thro' with the lowest pass mark -- what, I get a distinction!! And I know for a fact my brain power hadn't increased from my earlier university days.
Wind on a couple of more years and I'm now recruiting/selecting then next generation of high flying engineers to lead the business forward. Got a 1st class degree from an 'established' university then your foots in the door to be considered for an interview, anything less wasn't acceptable! (Screening the candidates it seemed everyone had a 1st or 2:1 class degree from whatever "university" they attended.) What became crucial now was not the educational standard, everyone had the same so you couldn't differentiate on that alone, but what they did outside 'education'!.
So yes, from my personal experience I do believe standards in education have gone down ..... but in this politically correct society where everyone has to suceed and no-one can fail what should we expect?