My experience was pretty much the same, even though I visited it only once so I have no memories of what it used to be. I can only say that the biggest and busiest hangout of my 2 weeks visit was the cruising area down the cliff by the church. The fabulous clubs, bars and beaches were...meh. Everything felt gentrified, expensive and overrun by mass tourism. And man did the cruise ships destroy the atmosphere whenever they were in town. Hordes of people walking the same path, taking the same pictures and maybe not even spending a dime, maybe a "traditional" trinket or gelato was the highlight of their visit. Same kind of locust tourism that plagues Venice. At least if those were gay ships the cruising area would have had more dick!
It's definitely still worth a visit but I honestly couldn't find a reason to come back when there are places like Berlin in Europe, and it's the same story I heard from the fellow gay tourists I talked to.