Tom,
Others here can probably give a more complete answers, but I'll throw in my 2cents, since I remember when this all went down, and it was a major factor in my exit:
I was told by a practicing dub (a real Kool-Aid drinker) that there is a "new light" on this matter after the 1994 WA. This modified understanding is that we are living in "the time of the end" and the "generation" now means all the people on earth that are alive at this "time of the end".
new light: yes, a major adjustment in their teaching on "this generation" was made, although I believe this all originated in a 1995 Watchtower not 1994; with some followup discussion in later years, I know definitely there was a major followup in 1997.
we are living in "the time of the end" this is not a change, they have taught this for decades.
The "generation" now means all the people on earth that are alive at this "time of the end". Basically yes, this is their "new light". Previously they taught that this generation referred to those people who witnessed the beginning of Christ's invisible presence in 1914, and would still be alive on earth when Armageddon came, for reals. What they did was disconnect "this generation" from the 1914, so that now its basically the generation that is present when Armageddon starts. Which basically makes it a useless statement: The generation that will see the end will be here to see the end. Well duh.
Despite the fact that this removes 1914 as an anchor point to try and determine just when the end will be here, the Watchtower insists that Armageddon is still very close, closer than ever! ever!!!! It's very very very close, really. Did we mention that the end is really really close???
In reality, I think a lot of witnesses, after hearing this new understanding, eventually realized what it boiled down to for them: the Watchtower is basically telling them- after years of proclaiming Millions Now Living Will Never Die, and You Can Live Forever in Paradise- that they can no longer assume the Big A will hit in their lifetime.
Hence, a general decline in most JW's activities since 1995, and more time being selfishly spent in recreation and trying to figure out how to manage without a retirement plan. And maybe getting an education.
No Apologies