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Have you noticed customer service taking a nosedive in this new economy?

I was on the phone with my insurance company for the better part of 2 hours and when I finally got to speak to someone, I was told the IVR sent me to the wrong person! I was livid!
I'd be willing to get a poorer plan with a poorer company if they'd have better customer service, but what if there's no such thing? I've noticed that PetSmart's and 2 different banks' customer service has been staggeringly incompetent! What's your experience been?
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I don't like that I can't go directly to customer service. They make you answer a bunch of questions before you get connected to a rep. Then you have to repeat a lot of those questions when you actually talk to someone.

My insurance customer service is usually pretty good once I get connected. I have had experiences with other customer services that took hours and that is frustrating. If you go to the wrong place you have to start all over. Not fun.

Recently I had to call my bank because somebody stole my card information and they were making unauthorized purchases. The lady who answered my call was being really weird. I was starting to think she might not be a real agent. She asked me the same question 3 or 4 times about a purchase. She sounded out of it. I was very leery.