While I agree that there is a failure to understand contemporary technology, I also think the incentives given patent examiners are misaligned. They're rewarded for applications processed; they're not graded on the number of bad patents they reject.

A patent is a deal we, the people of the US, make with an inventor: add significantly to the sum total of our technical knowledge, and in exchange, we'll give you a time-limited monopoly on the technique you invented. The problem is that there isn't anyone unambiguously charged with making sure this is a good deal for us: that the knowledge we're getting is worth the price we're paying. It's technically the PTO's responsibility, and they do make some effort, but the incentives given patent examiners don't encourage them to be hard-nosed about it.

Currently, I don't think patents about to be granted are reviewed by the examiners' supervisors or anything like that. Seems to me there should be an internal committee that reviews every patent about to be granted by junior examiners, and an occasional one of those about to be granted by senior examiners, to verify its quality. Repeatedly approving applications that then get rejected by this committee should slow an examiner's promotion progress.