If you define hacking as gaining access to scarce compute resources, then yes, hacking is dead because
compute scarcity is dead.
If you define hacking as controlling your computer hardware at the lowest level, then hacking is dead because no-one wants to write device drivers.
If you define hacking as *making the lights blink in interesting ways"[1] then hacking is incredibly, richly, and totally alive! You can make the lights blink in so many interesting ways!
To sum up, that's one really good change, one somewhat unfortunate but understandable change, and another really incredibly good change. (BTW I don't think the OP's point about complex OSS really fits in this particular essay - minimalism is important topic and deserves it's own essay, but it's not related to hacking, IMHO).
[1] I don't recall where I read this, but Feynman wrote about being involved with the Manhattan project, with the simulations they were trying to run on very early, primitive computers, and how one or two scientists put on that part of the project had to be replaced because they got too fascinated with the "blinking lights" to get any work done. I find this anecdote very easy to believe.