"He" has been the _proper_ usage way back from its roots at the German "er", which has the same usage.
"Man" or "one" (German, "Mann" or "man") has been used in the indefinate case.
We are not talking about grammatical errors here. You're free to declare great speakers and writers through the centuries to be in error, but what are you even claiming at that point? You could declare that saying the word "bread" is a mistake and it would be just as meaningless.
As with most arguments against the singular "they", your argument from German etymology also precludes the singular "you". Do you say "thou" all the time?
> Do you say "thou" all the time?
"You" was not only the plural second-person but also the formal singular second-person (https://en.wikipedia.org/wiki/T%E2%80%93V_distinction#Englis...) -- similar to German "sie" and "Sie". So it was always correct.
Anyway, I'm sure the PC crowd will win. It's just an (in this case, innocuous) example how systemically they can change they way we speak and communicate.
The singular "they" has existed throughout modern English. Getting rid of it is an insurmountably awkward and drastic change. People have tried, and they can't even remove it from their own speech.
The generic "he" is a relatively newer affectation that has risen and fallen in popularity in formal writing. I guess you can find a "PC crowd" to blame for its current decline, but this decline supposedly started around the 1960s, so you're not really observing anything new.
The only thing that's recent is (as EdiX pointed out) that there are people speaking out to say that they, as individuals, would prefer to be referred to with the singular "they".
But both "y'all" and singular "they" usage has always been informal, and inappropriate/ungrammatical for more proper contexts, which should instead have the more formal, traditional equivalents.
> ...it has become common in speech and in informal writing to substitute the third-person plural pronouns they, them, their, and themselves, and the nonstandard singular themself. While this usage is accepted in casual context, it is still considered ungrammatical in formal writing.
- Chicago Manual of Style, 16th edition
1. http://www.oed.com/view/Entry/200700 Pastebin link for non-subscribers: http://pastebin.com/kZFpdTnV