It kind of reminds me of an old saying I've heard. "The more you have, the more you want." Think of how satisfied you were 5 years ago with your brightest light. More than likely it's now just an average light to you, even though it's just as bright as it was back then.
Not exactly. I wasn't satisfied 5 years ago with my brightest light, I kept looking for something better. More often than not anything I bought in search of something better turned out to be just as bad as what I already had (if it still worked, which it often didn't).
There were the Surefire incans, of course, but I was never willing to be burning through 4-6 very expensive cells in 1/2 hour to get the output.
The big difference now is not only the better output and runtime and availability of rechargeable battery solutions (such as Li-Ions) which are acceptable in terms of cost and results, but also that you don't have to do extreme mods to get them.
As to whether we are spoiled, I think LEDs still have room to go for outdoor and big throw applications. It's now "easy" to get 500 lumens but it is still a "room lighting" kind of application rather than big focused throw. Plus why not a bit better output/runtime availability (better efficiency).
Some "custom" applications (e.g., tailcaps) are also often lower quality, either don't work as you expect, or don't work at all. It would be nice if the quality all around improved more.
Rechargeable battery technology also needs to improve (this is a problem in general, not only for flashlight applications, e.g., electric cars are pushing the technology ahead of where it really is right now).
These Li-Ions are still behind in terms of capacity relative to primaries.
All this is not to disagree that there HAS been great progress in flashlights, especially in the past 5 years, just that we are justified in wanting yet more!!
Comparisons with "average" buyers are fun, but do not really prove anything other than that many people do not pay attention to flashlights because they rely in general availability of light in their homes and parking lots. This is again a more general truth, people rely in grocery stores having cheap food and water flowing through their faucets...let's hope this situation continues!