I see where you're coming from. I don't use the term "saving" to mean it resurrected a dead industry, but more that it revitalized it to such a degree, that we're still skating on the successes of the platform without the prior market crash affecting the production and distribution of media.
Of course games weren't dead. I'd never imply they were. Computer gaming was still there, but it was so... outside the core, and not impacting much in the way of sales or general awareness. The only people that cared were people like us, who were still active in the home computing front. Arcades were still there, but I don't remember the same level of creativity that they had enjoyed from the late 70s to the early 80s.
I think my only objection to your original post was the implication that people who weren't there are unable to have an accurate reflection on that history because they weren't there, but then that renders the entirety of human history outside our capacity to comment due to none of us being alive for most of it. Which, of course, is ludicrous.
Was this brought on by the important console thread?