The trend you describe is old news. Lego realised that the vast proliferation of pieces was undermining their profitability, by bogging down their supply chain. Over the last eight years, they have massively simplified their inventory, cutting out huge numbers of single-purpose pieces. The number of colors in use has been halved.

The Lego you remember is still available under the Bricks & More line - big boxes and buckets of simple, primary-colored pieces.