E.g. modern cryptography works, the proof being that the UK wants to change the law to effectively ban it.
We've commoditized e2ee. The next step is to commoditize secure software, so that the baseline effort for any attack is too high for less determined / funded actors. You will still occasionally have to face a stuxnet, but we shouldn't need to face another epidemic of cryptolockers.
You are right that nation states can throw more resources at an attack. All you can do is make attacks as difficult and expensive as possible for an attacker to pull off without detection (commensurate with the value of the assets being protected).
I don't think so. Generally as software becomes more secure the hacks you hear about will become more sophisticated to match, but this does not mean that they are more prevalent.