Things are definitely better at Fender these days, especially when you get into Custom Shop stuff. The best Broadcaster/Telecaster/Esquire guitars I have played over the years were made in the early '50s. But just a few weeks ago, a friend of mine brought me his Custom Shop Esquire and it was every bit as good as the old blackguards I know and love. Then again, he paid something like $4k for it.
In other words: when Fender bothers to source good wood, dries it properly, and pays attention to detail, they can make something as good as their off-the-shelf production guitars from 60 years ago
You can joke as much as you want, but lumber quality has declined. If you do find pieces of old-growth hardwoods with good grain patterns in sizes big enough to make 1-piece guitar/bass bodies you'll pay through the nose.
For all the people who say "wood doesn't matter" there's a simple test: Go to GC and play a bunch of identical Fenders (or Gibsons or whatever). Do they all sound exactly the same, or do some sound better than others? Is the difference more likely to be due to manufacturing tolerances in the electronics/harware or differences in the wood?