Different eras, different problems.
For example, in the old, old days, the Medal of Honor was the ONLY award--during the Civil War, it was even given to an entire regiment just for re-enlisting. It was even given for several non-combat actions in the following decades. Only since WWI has it really assumed its sacred status.
The Bronze Star was originally the ground guys' equivalent of an Air Medal during WWII. It followed an upward trajectory of importance after that. In recent years, it's had some issues. In my observation, today the ones with "V" device are usually unquestionably deserved. The ones without, well, many are, and some are questionable.
The Vietnam era, at least from my second-hand knowledge, had a lot of corruption on the part of senior officers, but not so much on the junior side--e.g. colonels and above getting high-level valor awards for doing C2 from the back of a Huey.
I don't think the valor awards are an issue today. The standards for the MOH and NC are as high as ever. Probably the Silver Star fits in there too. The issue is the preponderance of peacetime awards. Sometimes I think we should do away with non-combat awards altogether.
There have been medal hounds for the longest time, and until the system is shaken up, top to bottom, there always will be. Don't judge a guy by what medals he has or doesn't have. I've seen total clowns get MSMs, and rock-stars get squat. Until you work or fly next to a man, you don't know which he is.
As a junior to mid-grade leader you have to admit to yourself that you can't change the system. I am a huge fan of the LOC and Meritorious Mast. Those are quick kills. They keep the players motivated and don't cost nothin'. As far as getting guys promoted, the fastest way to do it is to make sure you don't let a group/wing meritorious promotion board go by without making sure you have as many candidates on it as possible.
For all the doom and gloom, I don't think this is a "sky is falling" situation. I think we just have different problems. As someone once said,"The more things change..."