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Really, though, the creative and musically interesting period of the Dead was for the most part over by mid-'78. If you listen to older GD it's like a completely different band than the '80's.
You are right about Phish. They are different now, too, but not in a "disentegrating" way. I worry about Trey over the last year or so, as his playing is really much sloppier than it was just a couple short years ago. Yet, he seems perfectly coherent and engaged, they are smiling and enjoying each other's playing....
Trey "seems" sharper when he plays with TAB, which leads me to believe that the sloppiness I hear (that we all hear) with Phish is a result of him pushing and experimenting with ideas and stylings. He has been much more of an engaged listener to his bandmates in general over the last year and a half than previous, I think, and I believe the result has been more inventive and creative playing from his mates.
Jerrry Garcia could not get outside the box effectively over the last years of his career because he was barely alive most of the time. So the band just did what they could.
Phish is actively pushing the boundaries this year, presenting new music, reinterpreting old tunes and generally hitting home runs frequently. I mean, what they've done with Harry Hood this year is quite something and it obviously started last year in Hollywood Bowl. Back in '10 I never would have guessed that the Hood would ever stray beyond its perscribed limits again. I used to dread it's prescence in second sets because it was so predictable. Not anymore. Now, their most beautiful singular piece of music has been reignited with fresh life. That is not the work of a band "playing out the string".
I agree with your sentiments entirely. If there had been a blog in the '80's that used the same stringent criteria of judgment that we put against Phish these days, I can only imagine what we would have read.
Let's see.....set-killers, momentum-killers, rote playing, type 1, type 2, set construction, flubs, etc.etc. We're pretty tough on the Phish of Vermont and all they do is continue to impress.