SanderO, this is a very rich topic! One I could write about for a long time, if I had the time!

To just briefly note though, I think your observations are accurate, and it is a very interesting phenomenon to observe. I think overall, what is happening is that people are finding new ways to express themselves. The need for expression is a law of nature, for all animals, not just human animals. In order to express what lies inside, it is natural for humans to choose a medium of expression, and it seems that sexuality is still the dominant medium in our culture, but now it is taking a new twist, into fetishism in the mainstream. I don't think anything new exists within the human, but the ways in which what lies inside comes out, into some expressive form, are expanding. The sexual medium is expanding also; one's expression through the use of this medium used to be quite narrowly confined, but now, it is much more open, so new forms of expression are appearing.
As for narcissism, well I did a massive research project on that a few months ago in school (I'm in a master's degree program currently, a combination of drama therapy and clinical psychology; the latter only in order to become licensed; otherwise that aspect of psychology is quite boring because it is devoid of philosophical discussion like we are having right here, right now.) in a course on consulting and coaching for corporate executives. What I learned is that term is basically meaningless

Ha! That was my conclusion. There are so many different definitions of narcissism in clinical psychology, they are in competition with each other on definitions of narcissism; a totally out-dated term to begin with! I don't think mythological creatures should be brought into medicine! Despite disagreements on definition, various theoreticians and psychologists all seem to agree that it is 'incurable', that nothing can be done about it; that there is no form of therapy that has any benefit whatsoever. Wow! That's interesting; yet another failure of clinical psychology to log in my long list of the failures of medicine to address the human heart and soul.
I think it leads to more accurate discussion if we drop the meaningless term 'narcissistic' and simply replace it with 'emotional immaturity'. No matter what definition of narcissism a person likes, still, at bottom, they are discussing emotional immaturity. This means that the person is trying to fulfill some kind of self-indulgent emotional need of the same sort found in children, clamoring for attention; desperate for approval, etc. It means they are stuck in their personal development and are needing something in order to continue growing into adult. This is not 'wrong', but because it is pervasive it means we live in a society of extremely emotionally immature people! In my experience, I have found that many psychological problems are actually problems of emotional immaturity; that what needs to happen is personal growth, then the 'symptom' disappears by itself because it serves no purpose anymore once a person goes through a process of profound personal growth.
-Vekquin