When R’ Yom Tov Glaser was here from Israel lecturing for B’Derech we spoke to a group of (formerly) chassidish young men in Monsey. They all exclaimed that they have no idea what it means to be Jewish. In their view, it’s all about money and a dress code. As long as you either give money or wear the right clothes and appear on the outside as frum, then you are accepted, regardless of what is going on inside your heart. Rabbi Glaser, who is a Baal Teshuva, returned to Eretz Yisroel shattered by what he saw and heard. Rabbi Glaser said that Chassidim have 90% of Yiddishkeit intact; but, that we’re missing the first 10% -- the essential foundations of Yiddishkeit!
I would say things are not much different in the modern community other than the conformity in dress revolves aroung the latest secular styles instead of the jacket/hat uniform. The question is why with all the awareness, the yeshiva programs that have been developed, the lectures given, the funds raised to deal with this problem of "kids at risk", nothing is really working and the problem is getting worse. The answer (as the quote above reveals) seems to me to be that you can preach to kids all you want, but when they see that in the "real" world of our society all that matters is chitzoniyus, what do you expect their attitude to be?