But, Eric, the remake was so bad on every other front than the update to a contemporary setting was just one item in a long list of things that didn't work. Yes, Julianne Moore wearing those terrible 90s headphones in her first scene is laughable and the fact that it's in color takes a lot from the story, but overall I believe the problems with the remake are "timeless," it'd have been a bad movie regardless of when it was made.
There are issues that come out in PSYCHO due to the fact that it's set in the 1960s, even Marion's fate is largely read in scholarship as a punishment for "transgressing" in the first part of the movie (ie sleeping with a married man, stealing money). And that last scene where we get basically a pop psychology explanation of Norman's behavior is very 60s as well. However, I'd argue that while certain things about the story are lost in the time period, there's something intriguing about telling a story about those characters in today's day and age, especially with the approach they're taking in this series (with the out of date costumes, style, etc). I don't know, it totally works for me, I'm glad they didn't try to recreate the 1960s, in that case I feel everyone would be complaining about all the anachronisms in the show.
"Some people can thrive and bloom living life in a living room, that's perfect for some people of one hundred and five. But I at least gotta try, when I think of all the sights that I gotta see, all the places I gotta play, all the things that I gotta be at"