I think you've got a point. I'm not sure whether it's down to skill as such, but perhaps after the eighties' somewhat flamboyant solos, people got wanted something completely different...hence no solos!
You're right too about being condensed into a 3 minute pop song. I think the music business has become a lot more of an industry than a profession...It's not about being popular than being talented. I wouldn't apply this so much to the guitar bands that are around, but the lack of popular guitar bands in the "industry" means has given birth to the lack of a lot of deserved talent.
Something that's just come to mind is also the change in music styles...Guitar's aren't overly mainstream any more so perhaps that's why we're not hearing as many solos any more?...
Hmmmmm...I think you've opened a very interesting subject - let's get everyone's views here!