Hasn't it always been cheaper to make at home? You can make a VERY GOOD coffee for ~$1. Pastries are cheap to make as well, but more time consuming.
As for pastries, toast on homemade bread has no competition.
Of course it was. I make much better coffee at home than I could get at Starbucks. For me it's about something else: hanging out with friends or working on my laptop in an environment that's more interesting that my room or office. This is what I pay $10 of $11 for. (But admittedly, this happens rarely these days.)
Quality and taste was much better back then.
Now everything is made at scale with industrial ingredients, frozen, and mass distributed.