I don't know where you've been for the last 10-15 years, but what you're talking about - games shipping with significant bugs - has absolutely nothing to do with digital distribution.
Every single Civ game has required significant patching to work correctly. Every single Bethesda Softworks game has required significant patching.
A game requiring patching is not a digital distribution issue, although a product like Steam does make it extremely smooth for the consumer when it is needed. Every single one of the 50+ titles I maintain on my Steam account patches flawlessly and as soon as the update is available with no action taken on my part.
The rest of what you said is pure fabrication unless you can show me something empirical that games are getting smaller in scope or worth. Seeing as I've already gotten more hours out of this one title in a single playthrough than I did out of any game put out by Black Isle Studios, Obsidian's predecessor, or any other Obsidian-produced game, I'm going to have to call you on that point.
I've been gaming for all of it. I've been doing PC gaming since it started. Console too. while no, PC gaming is no longer a focus for me, I do still do some.
As for Civ IV. Never had a problem, certainly not a game-breaking bug Was it improved over time? Of course.
I've played EVERY Elder Scrolls game (Arena, Daggerfall, Morrowind, Oblivion) and the expansions for them. Unless patches were auto-downloaded (which on 360 Oblivion they were), I don't recall every downloading any myself. I enjoyed them all, and there were NO game-breaking problems I ever had. Sorry, but it's the simple truth. I'm not saying that there weren't bugs. Of course there were. But they were pretty damned minor. Hell, Fallout 2 had the car-cut-in-half bug. Again. Annoying but not game-breaking.
As an example.. Take Blood Bowl, released by Cyanide/Focus Interative.
This is a game based off a boardgame that has been going successfully for over a decade, closer to 20 years. Even the original ruleset that Cyanide was using, had been around for multiple years (LRB 5). At start, about half the basic and standard 'optional' rules either weren't included, or were outright broken. As someone who has been a programmer... It's really not that hard to write code-rules based on pre-existing rules. I'm not talking about AI.. I'm talking about simple IF-THEN-ELSE. If X happens, Then do Y, Else do Z. When the rules have been set for 3-5 years, there's no question about them. there's no 'lets figure out what happens if A pushes B'... because it's already there. There's an example
Smaller in scope games:
In comparison to games 10-15 years ago.. Gods I hope modern ones would have larger scope. But then I choose to compare Apples to apples. Not apples to oranges. Today we have software and game-coding tools that literally dwarf what people had back then. Given, games like New Vegas and Mass Effect ARE deep games. And are worthy, or at least worthier 'children' of the original RPG's like Curse of the Azure Bonds and the like.
But then you take (and yes, this is my opinion) the endless FPS twitch-shooters with less than a short-story of plot, JUST so they can focus on maps for multiplayer. And yes.. the depth and scope of games are gone. 99% of FPS games bore the living s*** out of me. I got bored with them back when it was Duke Nukem and Castle Wolfenstein. And most of them haven't gotten any better save for graphics. I was worried when I first heard they were turning Fallout 3 into a First-person basis.
Hell, for Halo, the best one was still the first, at least for me.
Games come out faster it seems, there are more of them, and many of them don't have a hair of improvement over the previous because it's a point-and-click cut&dry equation of 'what will people buy?'
then of course there's AI. We've had AI for ages, and some of them have been really VERY impressive... And of late, they've been getting dumber and worse. While there's not been much in FNV to worry about outside of some pretty bad Mob pathfinding, take Blood Bowl, or Civ V as recent ones, and I'd have a harder game against an ADHD 5 year old with Downs Syndrome.
Multiplayer on Civ V is barely even an Alpha level with the choices and saves (don't even get me started there. save-games should not be a problem)
The saves/fast-travel where the game crashes (on me some, but a lot have had the problem if you hadn't noticed) for FNV
That with having a good 5 years minimum of Multiplayer matchup lobbies that work great, that Blood Bowl and even some newer FPS's can't match or link games properly.
That Cyanide, having JUST released a 'new' edition of Blood Bowl STILL hasn't fixed some of the very basic rules-bugs
And yes. there's more.
So I repeat. If Steam/digital distribution is saving these companies SO MUCH MONEY... Then SHOW me by giving me a product that will run off the bat properly and won't break if you do a basic save-game or fast-travel.
Give me a game with more than 3 hours of story, because being an FPS 'it's all about the multiplayer'. I don't give a rat's a$$ about multiplayer shooters.
Give me a game I can lose myself in (yes, like Fallout or Oblivion)... and be worth my time and money to play. Because i want to have FUN playing it. Not pull out my hair because I can't get past a broken save-game. Or some other glitch that should have been found out in Beta testing.
I'M NOT PAYING to be a beta tester. If that's what I am.. then give me the game for free or pay me for it.