I've been watching this tread with interest and have been having trouble coming up with anything useful to say about the subject. It's hard to be sure of the issues without hard data.
At the risk of saying something that is hard to justify, there is a simple point I'd like to make, based on my own intuition and experience. I think that good engineers are born, not made, and I don't mean to minimize the importance of training when I say that. I don't think it matters what generation we are talking about, nor how good the high school math training is. A certain percentage of the population is suitable to be good engineers and they will be good as long as an opportunity is available. There are very good university programs that provide the fundamental training suitable for anyone with talent to become good. So, perhaps in our time, more than any other time in history, people that should be engineers actually become engineers, and are just as good as at any other time. I think it is also true that, more than any other time in history, people who shouldn't be engineers are becoming engineers. However, this is OK because there are many engineering related jobs that do not require the "true born engineer".
I don't really know what hard data would say about whether there is a shortage of "born engineers", or not. That is, it is not clear that the positions that require the talent and passion, can't be filled. However, if there is a shortage, then it is (I think) largely do to the fact that demand exceeds the natural talent supply in the population, and not due to any failings in our present society. When you exhaust the talent pool, you will end up with a shortage of the good, and with a high percentage of mediocre engineers as the general population tries to fill the void. I'm not saying this is happening at an increased rate lately, and I have a feeling that it isn't happening, simply because the pay scale for "born engineers" is low for the value they provide, in my opinion. When a real shortage spike occurs, salaries will reflect that fact (again in my opinion). We could very well see a larger split in pay scale as companies seek out the thoroughbreds . This is what basic economic theory would say, and I don't see a good reason why this would not apply in this case.