Don't you just feel sorry for the 'press a button' age? They'll never know what true imagination is because they have everything imagined for them. This reminds me of something I read recently: you know how in modern shows they put for something extreme or risky, "Don't try this at home"? Well some years back you didn't have to put that on shows and cartoons because it was pretty obvious you wouldn't try that at home, but not with the 'press a button' age... They need you to spell it out with them. I'd like to add that in relation to imagination is common sense. If you don't have a good common sense then your imagination might be vivid but irrational. Just my input.
Stefflabunny is right. Is not only the imagination that is gone. New generations (and, from my perspective, the former category includes people that are now 25 or even more) don't use their brain. Nobody reads, only a small bunch writes and everything has to be ready and served on a dish, like Fair said. And, yes, I agree about younger people to be apparently less ready to think and evaluate the world in a subjective way. We live in an era in which the technology has to be every year smarter to compensate the stupidity of most of the users.
Role Playing Games were born out of imagination and their purpose was that of stimulating the imagination. Computers have adapted them to a limited environment, cutting some branches here and there to make them fit in a digital console. Complexity has been sacrificed to make space for graphics and special effects. In these last years, we find on the market only Action Role-playing Game products: nothing is turn based anymore. People wants speed, speed and more speed. But if you run too fast, you don't have time to look what's around you. And, most important, you don't have time to think.
I believe imagination in role-playing in this era still exists, but I don't think it is common now. I am sure that there is still people who plays Role-playing Games and text Role-playing Games still uses their imagination, (I am one of them). But in my experience, sometimes, I have to depend on technology to help me with my imagination, for instance: Using technology to see how detail the object/creature is in the game, the maps, etc. But, role-playing games aren't supposed to be that way, like Bruconero said before, they were born out of imagination.
I love your memories of the 7th grade guided imagery exercise. Your teacher must have been a good storyteller to lead you through that. It inspires me to try something similar in an Role-playing Game - 20 minutes may be too long for me, but even in 5 minutes you can say a lot.
For me, there's always a conflict between playing like a war gamer, and playing a role. Because they're both fun intellectual exercises, but they're fun in very different ways. In the game I'm currently playing, I'm leaning heavily towards the latter, because I find it oddly fascinating. When I post an action, it feels more like I'm discovering what my character is doing, rather than deciding what my character is doing.
My observation in the matter of imagination follow a slightly different vein.
Those who know how to engage their imagination are able to cope, adapt, and even manipulate their environment to be successful in gaming.
On the flipside, you get gamers whose imagination is rather stagnate these tend to compensate by being rules lawyers, very big min-max -ers, number crunch the living daylights out of the games they play, and essentially dissect the mechanics in order to gain power in and out of the games they play.
So combining these two play styles, really makes for some diverse play sessions. The GM is stuck playing favorites, as they have to choose which side to favor, imagination or rules lawyers. It has not been a pleasant experience and in some cases has put my desire to role play on the back burner.
I think there are some people who can apply their imaginations to role-play very well but they are not common. Most of the millennials want you to think for them so it makes the introduction of imaginative based role-play difficult or awkward or even boring in some cases.