Hmm, yeah, 96-97 was definitely not my favourite adventure game era, but it did see a sort of counterrevolution against all the CD-driven FMV and first-person prerendered slideshow experiments of the mid-90s. In reaction, they offered really polished, high-quality hand-animated stuff in classic style like CMI, Broken Sword, LSL7, and one of my personal favourite underrated titles, Fable (...not the Molyneux game).
(Fable's plot was basically "Let's get naked in the most campy way possible": https://www.youtube.com/watch?v=eAJiCERMxfI)
After 98, with the exception of Grim Fandango, I definitely hated all the big-name adventure games released. Instead, RPGs like the Fallouts (97-98) and Planescape: Torment (99) arguably inherited a lot of adventure games traditions. If you like adventure games and have never played Planescape: Torment, I would 100% recommend it to any adventure game fan.