Does anyone else feel we are creating a "ME" generation?

I remember as a child having to try put for cheerleading, basketball and softball. Now a days kids automatically make the team and everyone gets trophies no matter how bad the team. I didn't make cheerleading the first year and while it hurt like hell at the time It certainly didn't kill me. In fact it made me all the more determined to practice and make it next year, and I did! We are not helping our children with this attitude and feel we are hurting them. Kids today do not know how to handle disappointment when they don't get something they want. Does anyone agree or am I being too cynical?