I don't think true hacking is dead, its just lost in a sea of non-hacking. The number of students who could write code in my high school of 2000 was perhaps 35. Those 35 were amazing because they had to work to get access to a computer, so we had already eliminated everyone who was just "oh that's too hard". Of the 35 perhaps a dozen kept at it beyond one class in BASIC. In my daughter's similarly sized highschool 40…
An astonishing thing happened when we finally made it possible for everyone in the world to tell a computer what to do: We discovered nobody knows what they want the computer to do! We were surprised (if also for other reasons) because we confused the product with the means, or to paraphrase Feynman, hacking is like sex: sure, it may give some practical results, but that's not why we do it.
I'm not sure if that's true all that much, if you take into account the scary things regular people do with Excel and Access, or did in the past with HyperCard.
I think a big part is that as an industry, we've told people that the right way to use a computer to solve your problem is to track down and buy some piece of software that does it (proliferation of open source merely made the "buy" part optional). We then proceeded to take away the means of self-sufficiency, widening the initially small gap between "end-user" and "programmer" into a chasm and hollowing out the middle. It's no surprise people only consume apps, when solving any problem yourself without an off-the-shelf solution requires you to become a programmer. And now the final nail is driven into the coffin with proliferation of SaaS which take away both your data and any ability to control and modify the behavior of an application.