Well complaining about Last Comic Standing representing the state of current standup comedy is like complaining that Pop Music sucks due to American Idol.... wait, you might be on to something...
But, regardless, there is still a lot of good standup out there today. I just watched a live performance of the Comedians of Comedy at the Troubadour in LA, and it was outstanding. Unfortunately, you lose a lot when you try to pack so many comedians into a 2 hour special, whereas the greats from the 70s and 80s could fill a 2 hour special all by themselves, but at least it shows that there is still good standup out there.