I don't think it's diminished, though it does sometimes seem to be used badly. Language is exciting because it evolves, because new words are absorbed and because we have regional variations. I do think more time should be spent on vocabulary in schools, how we use it to best effect, for argument or for clearly stating what we mean.
Shakespeare was talented and knowledgeable as far as language was concerned; we have many writers now who are just as good in manipulating their language. With less exam-driven schooling we could develop more writers; they would have time to experiment and to follow their instincts.
My one gripe, however, is that presenters and speakers on television and radio often do not have the high standard required to be a good example of the spoken word.