It's the very nature of daytime drama that core families change over time. As some characters run out of story (or actors leave), others are brought in to continue (or at least augment) the stories. If you don't change and grow over time, you end up with a borderline-incestuous mess like B&B, where everyone in the Forrester family has slept with everyone else's partners and stories are in an endless loop of deja vu all over again. I was not around when the Woleks, Grays, etc. were around for "comparison," but if those same people were still driving story after 40 years, I doubt the show would have lasted until 2011. And saying the show started going downhill in 1979 is hyperbolic considering the show lasted another 30 years.
We tend to look back on the past as "the good old days," but in most cases we were all bitchin' about the show just as much back then as today.
When asked about the most memorable plotlines of the show, most people cite things that involved the Paul Rauch/1980's era of the show and the Michael Malone/1990's era. Both featured the extended Buchanan family, including of course the in-laws/adopted relations and such like Viki, Tina, Cord, etc.
The Buchanans drive most of the current stories (heck, a few weeks ago we saw four of them hospitalized at the same time!), and though no soap is ever perfect, I think they're doing an above-average job when faced with amazingly difficult obstacles. Most critics in the soap biz agree that OLTL is the best show on the air right now. Of course this designation changes every year or so.

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