I will say, my experience was closer to the 1970 version.
I do believe, that due to those experiences- I got a feel for how to get OUT of potentially bad/dangerous situations on a bike, more readily than most kids now. By being PUT into sketchy situations, you learn to KNOW when they're coming, and how to AVOID the worst consequences.
In other words- the real world occurs, after the training wheels come off, and the parents aren't helicoptering over everything anymore. That's where situational awareness becomes paramount. Kids whose learning experiences have been "nerfed" by overprotective parents, don't know how to deal, when things start going wrong- while those that are allowed to make minor mistakes, learn from them, and more importantly-learn how to NOT make the same mistakes again, by their own experiences- will be far ahead in terms of ability and demeanor, in terms of being able to safely interact with the chaotic real world. They'll have the confidence to deal with many minor things readily, and the wisdom to more readily recognize and pause when things really are out of bounds in terms of being dangerous.
Fortunately, I've seen quite a few modern kids, whose parents have learned the lessons of the problems of helicopter parents, and seem to be doing better, at least in some cases. Yep, there's a few skinned knees and elbows- but almost to a one- later in life, those kids are the ones that you can give a task to, and they can figure out most of how to do it themselves. And they're the ones, that actually recognize, usually successfully, when something is truly wrong. They ask for help when it's actually NEEDED, not as a default for figuring out EVERYTHING.
In short- being allowed to break the small things, will help you learn better how to NOT break the big things.
Regards,
Gordon.