Whenever people see old systems still in production (say things that are over 30 years old) the assumption is that management refused to fund the replacement. But if you look at replacement projects so many of them are such dismal failures that's management's reluctance to engage in fixing stuff is understandable.
From the outside, decline always looks like a choice, because the exact form the decline takes was chosen. The issue is that all the choices are bad.
I used to deliver pizzas in the early 2000s. I would get paid
$4/hour (later bumped to $5 per hour)
$1/delivery (pass through to customer)
+ tips
I had good days / times where I was pretty much always busy and made around $20/hour by the end.
So delivery cost the customer $1 + tip (usually ~$3), cost the business maybe $40 a night (~2.5 drivers for 3 hours), and I made out pretty well.
I can't compare exactly but I feel like today the business pays more, the customer pays more, the drivers get paid less and it's all subsidized by investors to boot. Am I totally wrong on this? But I feel like delivery got so much worse and I don't know where the money is going.
I don't think this is a great example, because saving water (and thus the energy needed to heat the water) is both a social good and a private good.
Your new dishwasher program might take longer because, for example, (a) it's more efficient to soak residues than keep blasting away at them, but it takes longer and (b) if you alternate between shooting water at the the top and bottom drawers (but not both at once) then you can get away with using half the water, in twice the time.
Most dishwashers have an 'express' programme that uses more water and energy to finish faster, so if that matters you can still have it. If it doesn't matter to you (e.g. because you're running the dishwasher overnight, or while you're at work), you and everyone else benefits from the greater efficiency.
So I think this is an unambiguous improvement. :)
The average quality of appliances is a separate question. Anecdotally, I finally had to replace a 22-year-old Neff dishwasher. I got a new Bosch one (same firm, different logo), and have been pleasantly surprised that the new model is still made in Germany, seems pretty solid, washes well, and is guaranteed for 5 years.