I'd take a starting 5 of LeBron, Durant, Kawhi, Harden, and Anthony Davis over any 5 dudes from the Dream Team. The increase over time of shooting ability/range, strength, and positional versatility will overcome the "softness" of the modern game. Nostalgia can blind you. If you think that NBA players as a whole were better in the 90s than they are now, you don't watch enough basketball.
I don't think this is special to basketball. The best players now will beat the best players from 20 years ago in any sport. There's just been too much progress in conditioning, specialized skills training, nutrition, and the sheer fact that modern players use the previous generations to build their skill levels. Any decreased physicality from games modernizing, whether for safety concerns or to favor scoring, isn't enough to negate all the other advancements that the last 20 years have blessed us with.