Fair enough, there's no doubt times have changed.
To briefly address the instructor fees, I would say $50 is more in line with what a good instructor is worth and $20 is grossly undercharging, but obviously I'm biased.
So that leaves us with aircraft. It sounds like you're making more of a case against new aircraft than you are against glass panels specifically.
My question is, are vintage planes from the '60s and '70s supposed to last forever? That's an honest question.
Personally I believe we have to get new planes sooner or later. This conclusion leads to the fact that new planes are more expensive than old planes. It doesn't matter if you build them big or small, complex avionics or simple, they're going to be more expensive, end of story. Look at all the new LSAs out there. They're simple and have gone through comparatively little certification testing, yet they're still in the $100k+ price range.
Now imagine what it takes to design and certify a larger, more complex, more powerful aircraft (such as a 172). That's where the price tag comes from.
My philosophy is that there's no use getting pissed off at the inevitable. Flying is expensive. It always has been and always will be. We've seen a lot of changes in the past few years, but I don't think they're bad. The increase in price has also brought many positive changes in other areas (safety, utility, efficiency, comfort...). People who truly love flying will always find a way to do it.