I agree significantly with Joseph here. As a nation we may aspire to more or better or higher levels, but we as Jews have, it seems, always recognized that we stand on the shoulders of Giants. I think it comes from our prayers and supplications that have always first reminded ourselves and depended on HKBH’s recognition of the Tzidkus of our Avos . That degree of humility though not always evenly held is a distinction that if other groups do so I think they have been influenced by the Jewish experience.
What, though, are the implications of the concept of Yeridas Hadoros? Are we capable of less? Are our needs more? Can we say that now when there are more Jews learning more Torah than at any time in our entire history, more Jewish Hashpo’oh on the Umos Haolom, and more inklings that the geula is nearing that we have descended to a level of tumah below our ancestors? Maybe. Maybe we are closer to the geula because we need it more now than ever. Maybe we need to measure ourselves against our potential, and that is where we are lower. Yes, there is more Torah being learned than ever, but what could we have accomplished, and not yet reached. Yes, there is more Jewish Hashpo’oh in the world, but could we not have accomplished more, brought more peace or more righteousness to the world?
I think that the most logical understanding of yeridas hadoros is this. Our potential grows, but our accomplishments do not keep pace, or even diminish. And with every passing generation, the potential gap grows, with our accomplishments as a Jewish generation achieving only part of what we could have and part of what our parents could have. We have more resources and opportunities now. How are we going to use them?