A child can certainly tell the difference between the best of the best 2600 games and Super Mario Brothers. The latter is recognizably a modern game. Many 2600 games are completely unplayable unless you read the manual.

“Never moved on” isn’t entirely fair to the modern incarnation of Atari, which is a relatively new company intentionally producing/licensing retro games, emulation, T-shirts, etc. It’s not that they haven’t moved on, it’s that this is what the new, youngish IP owners are doing with the brand. It’s a choice, not inertia.