I think the Onion is as good as it ever was. The issue now is that the real news is so wild and unhinged the Onion doesn't have that segment cornered anymore.
Compare to this celebrity satire of the golden era: https://www.youtube.com/watch?v=F9QisdRPwEM.
I remember hearing my dad talk about how SNL isn't as funny as it used to be, too. It happens to the best of us.
Fast-forward to 2024, and, well... It just doesn't work as well anymore. Like, imagine an Onion story about Trump's appointments. What could it possibly say that would be stranger than the reality?