I'm 36, have been gaming for almost 3 decades (still have my VIC-20 and 2600 to prove it!), and while I revere my roots, I think that some may be letting nostalgia cloud their judgement.
First, it is impossible to choose one Generation of gaming as the best. Each one had its own great contributions to the cause, but it is the continuum as a whole that has made gaming what it is.
Secondly, if I was forced to pick just one Generation, it would be this one (or inevitably, the ones coming up in the near future). I'm sorry, I too spent countless hours scouring Hyrule, jumping and ducking in the Mushroom Kingdom, and engaged in combat with tanks made out of 3-4 pixels, but at the end of the day, those games are not as well-crafted or immersive as today's offerings. Sure, there are a few out there that have transcended time with epic storylines (FF series immediately comes to mind), but on the whole, give me the nearing believability graphics and immense story of a Bioshock over a classic like Mario 64 any day of the week.
I've kept my systems for nostalgia sake and to play whenever the urge strikes me. I haven't fired up any of them in quite a few years. My spare N64 gets more use from my sons than it does me.
We must remember the past to be sure, but moving forward into the future is truly the only way to go. Some here may disagree and stay with 2D side scrollers or top-down gaming, and that's cool. I miss it myself sometimes, but not enough to give up what I have today.