Absolutely true, GlennT. A new radio station just started in Edmonton and the playlist is a mix of standards mixed in with some modern pop in about a 70/30 ratio.
I hadn't realised just how many pop singers are 'doing a Rod Stewart' and releasing albums of old standards - even Robbie Williams, who really has a handle on the genre. Then add in more young fellas like Michael Buble, Jamie Cullum, Matt Dusk and you'll find there's no shortage of talent. Even Steven Tyler of Aerosmith is getting played with a version of Smile which, incidentally, grates on my ears, and also Bryan Ferry who seems to be shaping up to be the next Tiny Tim, fer crying out loud.
There's a new crop of 'devotees' to the old standards that's made up of people who grew up in the 80's and over the last couple of years have turned on to lounge music (I can remember discovering jazz/standards myself in my thirties).
I think, regardless of generation, a good melody still has a place in music, and long may that continue to be the case.