Times have not changed.
I went on an all-inclusive with my ex to Greece a couple of years ago, it was abysmal, we spent most of the time spending money off-site in other bars and restaurants - money that we had planned to use to 'do stuff' with - like tours, shopping and sightseeing. It wasn't a holiday that was at the cheap end of the scale too - it was not shy off a grand each and was supposed to be a 4* hotel.
Dinner/lunch/Breakfast is very much reminiscent of seeing pigs queuing up at a trough at feeding time - the food, most of the people we were on holiday with im certain had featured on Jeremy Kyle, lots of Newcastle shirts for some reason. Food was 'buffet style' - meaning it had been sat there for several hours and was burned to a crisp and dryer than a Nuns Knickers.
The beer/Wine/Spirits were cheap 'local' brands - very much like, if you imagine what Asda Smart price 2% Larger and cheap white cider taste like, you had 2 wine choices - red or white, different brands everyday - whatever they could get cheap basically. everything else had to be paid for - at massively extortionate prices.
Everything came with 'conditions' - you couldn't carry drinks or food out of the hotel, the main pool had a queuing system, the other 'puddle' didn't and was packed with kids with names like Mercedes, maycee-leigh and Layton whose mums were built like tanks, swore a lot and had Tattoos, and what I would describe as SAS style troopers made sure you stuck to the rules (so everybody had a good time obviously) or you would be beaten.
I would say its worth setting a budget - Ie, price up and AI holiday, say a budget is set of £2000 - book the time off work you want, get a nice late deal for about £1000 and spend the other grand on actually enjoying the holiday.
With AI, your 'trapped' in the hotel - set mealtimes, not much choice of crap drinks, overcrowded pools and crap entertainment (what the fuck is it that scroats love about Elvis impersonators?)