Question: By "Album" do you mean concept album? If so, then I would say that the the "album" is dying, not dead. While I agree that we have not seen anything in our musical generation(s) that could compare with The Wall (though he's an arrogant man, Roger Waters is probably the master of the concept album - The Wall, DSOTM, Animals, Final Cut, his solo stuff...all good conceptual work), there are still bands out there at least attempting to put out "albums." Although they are creepy, King Diamond has put out some concept albums (albeit, scary, scary concept albums) and bands such as Rhapsody, Hammerfall, Manowar, etc. are still producing concept albums. I would also recommend a band called The Warlocks. Some of their stuff is kinda puss, but then some of it is great (some 12+ min songs including one called Skull Death Drum Jam).
I've heard the Mars Volta of which Slaps speaks and I would agree with him...weird but good in a psychodelic way. Nick might be the only one to appreciate this, but both Works albums by ELP are most definately worth checking out. I also think that anyone who appreciates fine rock organ must own at least one live Uriah Heep album. Bert, check out The Man Who Sold the World and The Rise and Fall of Ziggy Stardust for some really good non-radio Bowie (I really like Man Who Sold the World...good stuff). Everyone should also check out the full Thick as a Brick album (all 2 songs!). Finally, I highly recommend Europe. They will surprise you with their rockingness!
I guess in conclusion I agree that, in general, modern music is a diluted form of what it once was. There's no way that a cd should contain 10 songs and be 30 mins...that's hella weak. Not to mention that I can't even tell who's on the radio most of the time...bands don't seem to have there own distinctive style like they used to. No one could confuse, say, Led Zepplin with Floyd or The Who, or Jethro Tull with Fleetwood Mac. That doesn't so much seem to be the case anymore. Except Luda...can always recognize the Luda.