I think the fact that new C64 demos are still being written with impressive new effects, despite the limitations of the hardware, is a great demonstration of how far human creativity can go toward solving problems, as opposed to the "throw more hardware at it" mentality.
So Stallman was right once again ;)
The real antagonism is between developers and ... let's say ... "power users".
If you are sufficiently technical to understand the tool in it's totality and to appreciate the ramifications of your own suggestions or use cases, etc., there should be a place for you in those discussions.
However, my experience has been that the attitude of "you're either hacking on the kernel or you don't matter at all" is very pervasive.
It was an era where you got to feel like your existing hardware purchases had become brand new whenever some new software came out. I still remember the difference between Sabre Wulf and the Thalamus games like Retrograde; it was like buying a whole new computer even though it was the same one we'd had for years.
These days you can't feel any progress in software without upgrading your hardware. Indeed, the games that set new standards like Minecraft or Fez, are the ones where the limits of creativity has been pushed instead of the limits of hardware.
In a way it was easier to learn all about the C64 in the 80s because it was new and relevant (and I had a lot of time and was obsessed), but on the other hand the documentation and tools freely available now are so much better that anyone learning this from scratch now has an advantage.
http://codebase64.org/doku.php seems rather good, for example.
Also, people are still figuring out why certain hardware 'glitches' happen and how to prevent them. For instance: http://www.linusakesson.net/scene/safevsp/