For another thing, what "traditional" American values are you referring to, in particular? Slavery? Racism? Institutionalized oppression? Police brutality? The military-industrial complex? The prison-industrial complex -- the fact that we have such a high percentage of our population incarcerated? Our legally-enshrined puritanical fear of victimless "crimes" like smoking a plant? The disenfranchisement of the poor? Income and wealth inequality? The continued weakening of labor movements? A small but loud and influential contingent of religious nuts who seem to believe that their god should be calling the shots in our legal system (hypocritically many of the same people who have wrung their hands over "Sharia law")?
Sure, I'm focusing on the negative here, and as much as I'm a bit cynical these days, there is plenty of good to come out of our country, even today. But this whole "wave the flag", "everyone should be more like us" stuff is pretty gross and short-sighted. The better values "dying" of late bit may be true (or not, I don't know anymore), but also overlooks a lot of bad stuff that has been in our national DNA for centuries.