We're overstimulated now to a crazy degree. Things are a lot more satisfying when they take work and planning instead of being readily available at any ol' time.
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And there was something 100x more memorable about getting together with a group for a LAN party vs just playing together over the internet.
Discussion
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That and the interactions that happen when you have a group together that will never occur online.
Last time I had a group LAN game was 10ish years ago. Managed to get a group to go in on copies of Artemis: Spaceship bridge Simulator.
Even the Halo 2 parties in high school had more going for them than all the hours I've managed to play with friends online since. (my guts tremble even now at the though of Vault soda)