I don't know, maybe you're just not hearing what I'm hearing. Watch Cory Henry on Snarky's Lingus. Jacob Collier do his recent crowd work with the NSO. Cory Wong talk about Vulfpeck and their MSG show and never rehearsing. Hiromi and Tank and the Bangas on NPR's tiny desks. I'd say Abigail Lapell adds tremendously to the folk of the era you are referencing.

Watered down is just not how I'd describe any of the musicians I listed

I come back to that keyboard solo on Lingus every couple of months and it never fails to make my hairs stand on edge. Absolutely legendary.

Larnell Lewis also delivered a world-class performance on that entire album.

You seem hyper focused on comparing all that you hear to what you already know you like. If you really want to appreciate new music, cut it out. You're introducing bias at the outset. If you approach a new artist as if their work is isolated, and give it some time to settle in, I think you'll be surprised.

Show me someone great who when you go to their inspiration you can't find they themselves very much creating watered down versions of their inspirations.