It can be tied to the NXT talent being put over constantly and the internet darlings not getting over due to "the man".
I think the truth of it really comes down to casual fans just not watching or going to see wrestling anymore. The live crowds are made up of adult smarks and families. There are no casual fans. For many of the younger fans watching today that are hearing these words like heel and face and all these terms, they've only grew up on post 2000s WWE and TNA. They are conditioned to think the WWE way is the right way, the truth is they don't know what a real heel is and what a real good babyface is, they don't know what a real pop sounds like or what a real good match is. That's why everyone has a great match. Every match on Raw is a great match but longterm wrestling fans who have seen good wrestling can poke holes all over the psychology of any match you see today and show you why they don't make sense, spots that don't make sense, devastating moves that are hit throughout the match yet there is no selling and the finish is usually a cheap finish despite the person losing having been hit with moves that would have finished them off had they known how to lay a match out.
I also think many longterm wrestling fans over the years just got beaten down by what was given to them on TV everyweek that they lowered their own standards, fans that should know better, that have seen wrestling at it's best and seen the best wrestlers in the world in their prime all of a sudden have had their expectations lowered for so long that any glimpse of someone getting over or someone getting a little bit of heat they praise them instantly. They are too quick to praise wrestlers, too quick to celebrate anything that shows signs of being a little bit good, the New Day is a perfect example of something the IWC jumped on at the start but of course within a matter of months the WWE had ran it into the ground and it no longer became cool and it's never been cool since. On Raw from what I hear there was a hijacking of a tag team match by the live crowd, that alone tells you about the people in that ring and whether they are really over or not.
You have people that are too young to know any better, that don't know good wrestling, that have never sat and watched a good wrestling show week to week and then you have people that do know better but have deliberately been forced to lower their expectations that are so desperate to grasp onto anything decent because there is so much rubbish on the show that whatever and whoever they latch onto quickly loses any sparkle that was there and there is very few people that are willing to say, outside the business and inside it, from fans to workers who are willing to step up and say you know what, business is terrible, wrestling is terrible. we deserve better than this and we deserve better than this every week and the longer that goes on the longer these wrestling companies will give you a subpar effort every week. They should be giving you the best show they can every week, not once every few months or whenever they hit the panic button, it should be every week.