I agree with this argument to a degree. However, we are not comparing coats of arms, or Art Nouveau logos. We are clinging to this particular coat of arms, saying that it has much more individuality than the updated logo. Of course it does: the level of detail is different, it feels old and pompous. It has crowns. Three of them. It has Latin words. In all caps. Lots of character. Though probably looked completely generic when it was introduced in the 16-th century.
We overestimate the individuality and even the capacity for individuality of old things. Yes, anyone could add different squiggles and different Latin words -- but I doubt this is what you mean by "capacity for individuality within the style".
Modern logos are very minimalist, which I agree leaves less space for expressive individuality (basically by definition). But great modern logos are still possible, and they still often convey a deeper, more individual meaning.