I'm over 50. I played in the streets whole afternoons, full days during school vacations. They were dangerous years in Rome, terrorism, political violence, heroin everywhere.
Despite we are now living in safer years, no kids are playing in the streets anymore. Also in the nearby park, they struggle to reach a 5 vs 5 football (soccer) match when we had plenty more for a 11 vs 11.
A prominent psycologist just released an interview: why do italian parents love Sinner, the tennis player, praise his capabilities, his energy and willingness to train, but accept that their kids spend hours sitting on the couch playing games or browsing socials?
I also agree with you about local, family owned shops: in my area there were 2 supermarkets and they were far away. Now there are at least 6 and one is less than 300mt from my house. The family shops are still operating and thriving, but some have changed, adding locally pre-cooked food to the old offer.
So, less sport, more easily available junk food, more parents working late to keep supers open so more use of pre cooked food, more time spent on social media... a explosive mix
Pre-cooked means NOTHING like what you find in north America.
You can get plenty pre cooked food that are healthy (and flavorful).
Of course you can also still ask for fries, but that's not common in Italy