anyone remember back when a movie could be 2 or 3 hours long and didn't require explosions every few seconds to keep an audience interested
In actuality, movies have been gradually increasing in average length since the inception of the motion picture industry. The earliest films were really short -- The Great Train Robbery, released in 1903, was 12 minutes long. In this decade, 90 minutes is considered a bit on the short side, and anything under 90 minutes (many animated films fall into this category) is "really friggin' short, suitable for children and anyone else with a short attention span."
I had at least one film history site blocked at work, but I found a couple other pages that have interesting stats. This page shows the trend line for film length -- the graph is given in meters of film, which correlates linearly with run time (duration). This page gives a bar graph of run time broken down by decade, although this WikiAnswers article does critique the methodology used by the author of that study (e.g., the choice of the top 50 rated films in those decades, which may skew results).
Precious few movies approached the 3-hour mark "back in the day" -- I think Gandhi, released in 1984, is the only one I can remember seeing as a child, and it was a rare experience for me in that it was the first time I remember going to a movie that had an intermission. A more recent example would be Kenneth Branagh's adaptation of Hamlet.
I guess what I'm trying to say is, people tend to remember the past selectively, and usually with rose-tinted glasses.
It's true that your typical summer blockbuster relies more heavily on shock value and SFX/VFX to keep the audience's attention, but I would argue that the vast majority of dramas that we see today easily exceed 2 hours yet don't rely on explosions and other VFX to carry the audience; just off the top of my head, I can think of We Own the Night and The Curious Case of Benjamin Button.
So... I see hope for the future, not despair. :-)
but they're also going to get used the idea of screwing players over without any real negative feedback?
This, I fear, is going to bite Sony in the ass in the long-term, but they are going to flirt with this model anyway because it frankly goes with the kind of corporate culture they've developed. It's a bit like having the much-storied "arrogance" of Apple, without as much good taste or sense. (Not trying to start a flame war, considering how much Apple hardware I own, but the perception is out there, and not entirely unjustified.) The control freaks in Sony like the idea of being able to make unilateral changes to their products without getting beaten up by whiners, and as long as revenues don't take a hit, they're likely to win the day. That entire model is predicated upon gamers either (a) not noticing, or (b) not caring that the game is being nerfed or otherwise mangled in an undesirable way. As soon as Sony crosses some threshold where someone in the gaming community notices and gets vocal about it, social network effects take hold and even people not directly affected by the changes will complain or quit playing.
If an established company keeps starting MMOs that are designed like this, the MMOs will start to appear to be nothing more than get-rich-quick schemes. But since these lite MMOs are mainly designed to tweak the reward circuits of the brains of the players, there will always be a small core of players who will play such games; these are the same kinds of people who'd play slot machines in Vegas. So this is a lot like gambling, without the requirement that sometimes the house has to pay out. The money is real, but the rewards are virtual. Calling these MMOs "games" is a bit like calling a roulette wheel or a slot machine a game -- you might call it that, but it surely has no real skill involved.