Plenty of shmups and danmaku still being made
Many simple indie games like Downwell
Many level-based indies like Hotline Miami, etc
But in my eye, the pinnacle of arcade design was a static stage or arena with a simple objective, with extra mechanics you can use to style and show off. Crazy Taxi, Monkey Ball, THPS, and Marble Blast come to mind. That approach to mechanics was merged with a singleplayer structure with DMC, and it was all downhill from there.
There are revivals of old games, but few original games with original mechanics that capture the feel of my favorite period of arcade (or arcade-like) games. P* is the closest, and even then I have to suffer through walky-talky sections in Bayo 2 and Revengeance and I want to die.