I rode freestyle in the 80s as a kid. I think these days, the lines have just become more and more blurred. Back then, the BMX (racing) bikes and the freestyle bikes were in different sections of the bike shop. And they were spec'd very different as well. Different geometry, frame designs, weight, accessories, etc. You would never race on a freestyle bike, and you couldn't really freestyle (flatland) on a BMX bike unless you just accessorized the hell out of it.
People don't freestyle the way they used to either. Most freestyling back then was flatland tricks. Street riding the way it is now didn't really exist back then. Nobody was riding a bike like a skateboard back then.
The simplicity of now is sort of cool, but sort of boring too.