American Exceptionalism is pretty real, whether you want to count the history (first and longest lasting modern democracy, as well as only country in the world with constitutionally protected freedoms), Economy and standard of living (largest and one of the highest and likely to remain so for the 21st century as it was for the 20th). Geography (arguably the single biggest source of the US's wealth and ability to have such lax laws). Now whether the people are truly more exceptional is up for debate. I'd argue they are, if for no other reason than they have been the primary location for skilled innovators and ambitious entrepreneurs for over a century.
That being said, I agree with your first point. Things are generally trending down in all aspects of life, including creativity. We are not blessed to be at the end of a multiple generational cycle, ala 'strong men create good times...' It IS however completely fascinating to me to watch our civilization crumble from its highest point, as we all look like fools from just a few short years ago, 'the end of history' and all that.