I'm kinda skeptical about that paper, or at least the conclusion that this is an illusion (which obnoxious people are going run with to deny and disparage people's perceptions, so they get to feel like the clever boy who's better than everyone).

I wonder if what's going on is more of "progressive alienation with age," where young people basically accept things as they are in their youth, then get slowly alienated by rapid cultural change. Also maybe there's an age discrimination factor as people get older they become less valued/respected by strangers.

I bet those results could be swayed significantly if this question was asked first:

"Are YOU getting less moral/kind/respectful/honest?"