Ironically, I felt this very way - that the internets was making people dumberer.... By that point, I had used my fair-share of BBS's since 1983, though a friend started using the internet from about '92 on - and in just two years, he had lost so much about who he was.... but I'd say it was due to downloads (games, pirated software) and how he used it. He had forgotten how to use some of the more basic DOS commands, and defaulted heavily into the "Like" and "Um" parts-of-speech that have plagued American English language since the on-set of decline of the Valley-girl speak, you know?
Sadly, something similar has befallen to me, as I've lost a small amount of DOS-knowledge, and memories of so long ago... though I hope this is only due to disuse, oppose to replacement.
And yes, the age of Idiocracy has come. It was a warning prophecy just three years prior to its' commencement, which we had a chance to prevent. Wall-E is just an enevitability, from advertisers pushing the "Slacker" lifestyle, a-la Homer Simpsons' "Can't someone else do it?" slogan during his run for Sanitation Commissioner.