Interesting question this. Personally I think there are more factors than just technology that are taking the fun out of driving. Things like traffic density, influence of law enforcement agencies to name just a couple. Money is also a consideration. I would dearly love a car such as a Lotus Elise but these cars really only come into their own on the race track or that deserted piece of twisty back road. I'm not sure how much they cost in the UK but here in NZ they're about the same price as a 156 V6 Monza and due to their rarity have very low depreciation. I've only seen a couple second hand and they were both low mileage but very well used. As a family man I can neither afford nor justify such a vehicle - maybe when I'm older, hopefully I'll still be able to enjoy it, that is if the thought police haven't legislated against having fun.
Oops, gone off topic here. Technology has its place. The advent of ABS, VDC and all those other acronyms that try to make our driving experience safer do take some of the fun out of driving but for the majority of drivers it doesn't matter. This type of driver never pushes hard enough to activate the ABS or VDC (this type of driver also misinterpretes having fun behind the wheel as dangerous anti social behaviour).
In short I like my 156 not because of its technology or lack thereof but because of all the cars that were on my short list (in my price range) it fulfilled the requirements of a family saloon AND offered the biggest "grin" factor (on the twisty bits even my 6 yr old son says "faster Daddy" as he's trying to hang on in the back - the booster seat slides about on the leather). This is a rare combination these days.
Just re-reading what I've written and I'm not if it makes a lot of sense but I guess what I'm trying to say is that we live in an increasingly technological world (for better or worse) and the growing levels of technology in cars is just a natural progression of this. But there is still a market for bare bones cars like Lotus 7 replicas but these days they really only appeal to those of us who enjoy driving simply for the sake of driving.