Going back to Lion King there's been a trend to design shows with the sonic impact, and unfortunately the volume, of modern movie surround sound experiences both in movie theatres and home entertainment systems. The upshot is that shows sound decidedly amplified, and unnatural. That is the current trend in sound design and one that is pushed by both directors and producers, not necessarily sound designers. In one instance a designer was relieved of their duties because the producers wanted a show louder than what the designer felt appropriate. The design of Phantom was changed to be louder, following changes made in the Vegas production. The upshot is a louder show, with less dynamic range (difference between soft and lout passages) and less intelligibility.
The other problem is not respecting the room. All performance spaces have a saturation point beyond which the sound gets muddy. Too many shows want the impact of volume, the room be damned. So you get shows that lose intelligibility.
Not all shows have this problem. Good examples are Fun Home, Follies, to name a few.
Until audiences push for more modest levels, you're not going to see a change.