At the same time there is nowhere to put any insulation on external walls meaning that during the winter were leaking huge amounts of heat and during the summer we live in an oven. Compare that to my friends modern new build in the same city (Edinburgh) their internal temperature is mostly stable.
There's also things like "you can't run any extra cabling"- adding ethernet to my existing cabling isn't happening without replastering my entire home. And lets not start with modern 5GHz WiFi not passing through my internal walls.
Needs have changed, materials are more consistent and easier to get, efficiency standards have changed. All of these things have had a huge impact on materials and costs. It's unfair to just say that buildings are built worse without considering anything else.
I think this is very much subjective in the end though. Also because current building techniques still make use of stone, bricks and concrete which all have the same downsides. But as you said they can be an overkill for some people who don’t mind the walls being quite soft for instance.
I don't think that's a fair takeaway - drywall lets you do things like insulate, run cabling, provide moisture barriers, easily change room layouts. These are all things that people want to do in their homes today that are straightforward (mostly) with drywall, and borderline impossible for a DIY'er in an older building.
My in laws just built a new home with an average builder. I got to watch the house go up - know what’s in the walls, etc. Their house is higher quality than mine. New construction seems to be better than buying old homes on average, and prices reflect that - new costs more and you get less.
This lead me to a somewhat startling revelation: houses do not appreciate in value. The house looses value but is offset by the dollar losing buying power in the housing market.
From 100 years ago most of the houses that you see are either stone/brick houses, or timber-framed houses (thick post and beam, not what people in the UK call timber framing today). Those houses are always impressive compared to todays 2”x4” frames