It very much does, unfortunately. In the US, the places with the highest housing shortages are mired with endless red tape, discretionary reviews, parking requirements etc. that substantially increase costs. This leaves little room for anything else, including aesthetics.
Developers have gotten very good at navigating this, but it has also led to them sticking to basic "good enough" designs like the five-over-ones we see when new apartments are built.
I think the cause may be that most real estate developers are not students of architecture and also are looking to minimize costs and time. Even if the developer wants to build something beautiful, cash flow (burn rate) is a big problem: You borrow millions or more, and have no revenue for the entire time it takes to build the building. Getting credit is hard enough. Do you go more in debt, and possibly for longer, for the nice trim? Does the banker also care about architecture and see that as a good investment?
Also, the trim then and trim now probably were designed with the same thing in mind: Whatever is least expensive with current technology. For example, an architect once explained to me that interior trim, for example where the wall meets the ceiling, has a purpose - it covers flaws in the join. Modern techniques and materials allowed us to eliminate it.
Most importantly, speaking of innovation and technology generally, IMHE what you say is an almost universal experience: Often it's not the new thing that is the problem, it's that the old seems carelessly discarded. All its benefits and nuance; all the skill and expertise; all the deep understanding and appreciation that comes from generations and lifetimes spent developing and using it, that enriched our lives; all lost. Think of poetry, which used to be far more popular - now people barely read it much less have any deep understanding of it. People who would have been poets are now doing something else; who could even mentor you if you wanted to be a poet?