While the points you mention are valid, I think it's more complex. Everybody has some part in one's development and ongoing, true, but just to a certain extend. If you're never taught how to learn, how do you learn it?
I also don't think that Gen-Z has the most psychological issues, but that the stigma of addressing those is finally disappearing and treatment is actually encouraged. Basically everyone I know here from the Boomer Generation has a lot of psychological issues - they just don't address it, because they have to "suck it up" as they were taught to. There is SO much PTSD from several war around me, it's not even funny. People in their 70s checking out the exits when entering and things like that. But they don't talk about it.
My generation is full of psychological issues. But we were told that we can achieve anything we want, that we're totally free, and with that comes total responsibility - so those issues are our own responsibility. Everything is our own fault, and we have to change ourselves to be better all the time. And not a "better" that was meditated on, though through, cautiously selected. No, the "better" that society told us to be. More productive. Better parents. Better humans. Better parts of society. Smarter. Read more. Healthier. Again, not for the sake of being better in itself, but to be better for the system.
I think that the education system is lkely better at teaching now - but the way they teach is worse. The expectation in the past was that a student was expected to learn - now, nothing is expected of them. They are pandered and catered to - by parent and society.
The environment you are observing is a bit different though, isn't it? The older generations went through real hardship, real war, real atrocity - they weren't damaged by someone getting their pronoun wrong.
Yes - for better and worse. Youth of today are old-hands at psychological talk, because they have been therapized since toddlers - well intentioned or not, it has made many of them oversensitive to what they should barely feel. They are like adults who have grown up on a bland diet and had their first taste of a mild chili meal. Sweating the small stuff.
Perhaps this is hand in hand though? If we aren't being better, how can we make a better society. And if we don't make a better society, how can we be better? This degradation down to the lowest common denominator means we are constantly going to keep degrading.
At least in my school, it was learning and learning how to learn. My math teacher (besides teaching us how to calculate when we would be allowed to drive again after a hard night out) always said: "Math is not about teaching you math, it's teaching you how to solve problems."
That is indeed something that is not going well right now. The problem solving capabilities are incredibly low - result of parents and society solving every problem for everyone. Forgot to buy all the ingredients? Call an Uber eats. No need to work something out with what you have. Can't make it up the stairs at first try? No worry, mom/dad will carry you, no need to scramble your way up and maybe bump your head to learn how not to do it.
Absolutely correct, it does seem exaggerated to us. A friend of mine, looking at that generation, very cynically said that the world needs a war to get things back on track. On the other hand, though, everybody suffers at their own level. One doesn't understand the other's suffering, it's too personal. Experience can not be taught.
That is always my main argument. The system keeps itself alive by destroying what is left of values, pushing humans into worker bees lead by instincts, with no deeper connection nor to each other nor nature nor anything, and with no connection at all to themselves. The question is - how to turn that around? It's easy to destroy values and community, but it's very hard to build it again. Anarchism is based on pure value beings, and is a wonderful theory, my favorite Utopia - but for it to work, you need to educate people on values. That was tried before by many, and has led to authoritarianism. It boils down to two questions: a) are there universal values, values given by "god" or whatever you will call it? and b) if not a, then who gets to decide what values are the correct ones to teach?