I can assure you my view is not through rose tinted glasses, more based on experience and reality. If you wish to see more resorts that appear to be in terminal decline then I would suggest a visit to the north of the island where many open prisons are now in operation (all inclusive hotels). These places have a terrible effect for the local tavernas, restaurants, kafenions etc. As much as I hate them, we'll have to get used to them as they are very successful. They undercut the price for a self catering package holiday and supply all food and drink, meaning you don't need to take a penny "spending" money with you.
Many places in Agias Pelagia were feeling the pinch last year and it wasn't unusual to be the only diners in a restaurant. I fail to see how this is rose tinted. As for the present political and socio economic climate in Crete, if you feel my view on this is rose tinted then you completely misunderstand. I could go on about the natural beauty and the welcoming people, but you don't want to appear to acknowledge this, which is a shame, as they are the paramount reasons for returning year after year.
An interesting thread, which I have hesitated to join since I can see some truth on both sides of the argument.
The world is dynamic and if something is not on the incline it must be on the decline.
Greece has been in rapid decline, so there can be few spots there which are not following in some way. Failure of the olive crop has not been confined to Crete and the loss of such an important export commodity could not come at a worse time for Greece.
We have not been to Plakias for two years for family reasons, but would expect the wider financial recession to have effected it to a noticeable degree.
I am not quite sure where the thread moved from discussing gradual to terminal decline, but as Europe emerges from the recession, I am sure there will be a resurgence in Plakias. It may take some time, but for me the most noteworthy aspect of the Cretan character is resilience and so the locals will still be there to take advantage. As Happyashellas says, the biggest danger to local tourist economies is the all inclusive. It is slowly strangling the life out of Kos tavernas and apartment owners. Let us hope Plakias avoids its clutches.
Still, the thread has actually galvanised us. If the Plakias economy is suffering we need to do our bit to revive it and have just booked flights and accommodation for next year.