Well, I'm 37, so I guess I fall in between guys like bigals and yoblues. I've been interested in cars all my life and from what I can see, things really haven't changed all that much.
When I was reading Hot Rod in the late 70s and early 80s, the old debate between "hot rodders" and "street rodders" was just coming to an end. Hod rodders were the then "old school" guys who only worked on cars before a certain cut off date (the date kept evolving forward, but I seem to remember 1947 as being a number that came up). These guys prided themselves in the fact that the built their cars - they weren't store bought or bolt-on, they were creations.
The "street rodder" guys were from the beginning to end of the factory performance era. They started with store bought cars and added bolt-ons, engine work, etc. to make them faster. To the "hot rodder" guys, these were simply mildly modified factory cars that anyone could build. But, the street rodder guys countered with the vast improvements in performance that came with more modern machines.
Today, similar arguement range between what used to be "street rodders" and "ricers". In my mind there are plenty of people from both factions who are far more concerned with adding flash over substance - there are plenty of Civics and Intergras AND mid-80s F-bodies and Mustangs running around with flashy paint, bigger wheels and tires, headers and exhaust and a loud stereos. So what? As long as their owners enjoy them, why rag on them?
I've also seen a couple of Civics in my area with some very tasteful body mods and beautiful paint. Don't know what they were running under the hood, but the cars were a testament to some serious work and craftmanship.
In terms of modified cars, if its done with skill and taste I can certainly appreciate it - whatever it is.
In terms of factory performance - I think there is plenty of room for both. For some, there is simply no substitute for a V8. Myself, I'm not so concerned about the engine configuration as I am about the whole package - handling, braking, engine, feel -- how it all comes together.