This generation is no different from any other; it has simply transitioned from previous delusions to new ones. Whether you're obsessed with getting rich or going to heaven, you're going to die either way. TV, materialism, and video games are to this generation what LSD and passive aggressive rock was to their parents', and while that generation is a paranoid mess of government-hating whiners, they are neither any better off in terms of understanding nor have they demonstrated themselves to be totally inept.
People have been removed from direct involvement in their livelihood for centuries, now. iPods and Twitter are exacerbating this, but weak Christian values and compartmentalized economies have been around for a long time.
I will concede that there has been a stark fragmentation of social spheres in recent years, though. This is a huge problem, but I don't see what it has to do with this generation's capacity to deal with global issues.
There is still hope.
The notion that our generation is 'no different than any other' is a dangerous one. You acknowledge that iPods and twitter are exacerbating the problem: things of that nature have produced a generation of many more human beings than previous generations in which it is becoming increasingly easier to tune out and fall into place somewhere in a crumbling society. Our civilization is in decline, and those living within it cannot help but be affected by this.
Also, our weak Christian values have grown weaker over the years, to the point that our generation sees through them and no longer has the ability to consciously uphold any values. People look to their culture to define their values and personalities. Past generations were no different in this regard, but we must acknowledge that the constructed illusions of mankind are increasingly more pervasive than the world at large, and that the only means of accessing the world at large is really through illusory, entertaining, emotionally stimulating means.
I meantioned before the increasing focus on self-esteem. All of the college students I know are conditioned to think they should receive an 'A' for every course they take; if they are given a lower grade, they blame it on the professor, saying they did nothing that would lower their grade. Our generation truly believes that all people are equal, but that they somehow deserve more than the rest. While they hold the position that there are 'C' people out there, and have no trouble criticising others for their behavior, they become very hostile when criticism is directed toward them, and shut out or misconstrue what is being said. This may be a trait common to humanity as far back as we can trace it, but as our population increases, and as our capacity to tune out reality increases, standards are lowered for ourselves and those around us.
Solution: kill everyone. If there are no people left, then there won't be a next generation which will be even worse than this.
Edit: people keep saying Darkthrone, Metallica, etc. should have quit before they started making bad music. Shouldn't the "Human Race" have quit before it started making bad people?
As much as I like this solution, it is unfortunately as unrealistic as the idea of treating everyone equally. And 'bad people' are made over time, as a result of unfortunate and deadening cultural circumstances, which contribute to a gradual decline in the genepool. Nature and nurture work together, but it all comes back to the ideals we uphold. Sadly, the overarching message is that one should take pride in his mediocrity.