I'd certainly agree on the faith point, as I've said above. We also, when busily golden-ageing, have to take account, as you rightly say of our tendency to "remember with advantage". There's also the tendency to believe headlines over actual experience; ask people whether crime's increased over, say, the last 10 years, and they'll tell you it has, but the British Crime Survey , which is pretty authoritative, shows that year on year crime has either remained stable or decreased. FEAR of crime on the other hand continues to go through the roof.
All that said, we still, I'd argue, have a lot of observable anti-social behaviour; stuff which may be below the "nick the little scrote" threshold of the police (although may still be criminal), but still causes unease and sometimes fear; the kids hassling you outside local shops to buy booze or fags, the casual vandalism of property etc. Whether that's on the increase or not, I think it contributes to a sense that society's standards are declining.