The trend toward keeping with what we have is often mistaken as zero progress when in reality it is more a trend towards massive evolution. If you can't look past the "iPhone app era" how do you expect new students to? Should all students be forced to have PhDs in AI/Distributed Computing/Quantum Mechanics?
The problem of kids leaving school wanting to write iPhone apps seems to have nothing to do with computing at all. It seems to have everything to do with "Get a career, make it rich, find a nice job, get married, have kids, retire", which for a large majority of the population is all that maters. So it isn't so much a computing problem as it is a societal problem. I imagine your rant could swap out a few words and be used as a rant against every single academic and industrial industry that exists today.
But, at the end of the day major companies with major dollars are building self driving cars, space ships, virtual reality. Oh and they are also buying companies that contain only talented people for millions of dollars to do research. The fact that the economic landscape is pumping out computing literate students seems to only be a good thing, regardless of their intentions.
And yeah, the web and most of its products still suck. But that has little to do with the technology. If you can't realize that then maybe you need to get a bit smarter.