noglider 

That is around the time when the esteem of steel-framed bikes peaked. Thereafter, there were compelling reasons to choose aluminum and carbon fiber.

As for quality, I agree with those who say it they haven't peaked yet. They just keep getting better.

But as some noted, the market has shrunken.

It's hard to tell, but the market for steel bikes seems to be increasing a bit, and not just at the high end. Even bikesdirect and nashbar have some steel models. I believe all Linus and Biria bikes are steel. Linus is a solid value in midrange. Biria is slightly higher-priced with a similar value.

Joe Average who is not a bike nut may not care about the æsthetics or history of steel bikes. Aluminum costs less and is lighter. Lots of aluminum bikes ride well. They generally hold up well, too. They are not worth repairing when damaged, but that's really not a big concern for many people anyway. Modifications are also harder, and that is also a very narrow concern among cyclists.