I still have every 8-bit machine I ever used to educate myself, and they still work. In fact my children are using them to learn programming, too.
I think what happened was that people got lazy and decided to just buy games instead of developing themselves. And this lead to the game console, and .. developer greed economy .. and the rest is history.
There are still great machines out there that can encourage youth to develop software - take the Open Pandora, for example (http://openpandora.org/) - it comes with everything you need to develop great software, and is complete. It is expensive - the economies of scale dictate this alas - but until someone rises up and demonstrates to 'the majors' that there is viability in teaching someone to program software again, we won't get compilers back onboard.
Imagine if the Nintendo had a compiler cartridge .. Imagine the same thing for the PS3/XBoxen of today. All it takes is a little less consumerism and a little more developerism.
Encourage a developer ethos on all fronts!