"I believe that, as more designs are carried out by computer, engineers will lose the feel for what constitutes a safe design. In that regard, I believe that overall reliability suffers. Is advancing the state of the art worth a decrease in reliability?"
I am totally with you on this one, as I've typed around here many times. There *will* be another major collapse at some point due to mis-use of a black box.
I doubt that LRFD is to blame, however. The advent of the cheap personal computer and the currently popular, un-named automated steel design system, combined with tight structural fees combine to cause the danger, IMO.
Structural fees and schedules are so tight that it is very tempting to press "Run" then "Export to dxf" (or worse yet, "Export to SDS/2") and then never look at it again. I'm sure most of us can point to a pet case or two of that. I have one in mind that actually caused failure.
I'm going out on a limb to come up with an example of possible future analyses that might be carried out with LRFD, but not ASD. Here goes. Imagine that I have a load that is genuinely better represented by a probability distribution than a deterministic design load. If I have separate load and resistance factors, then this can be dealt with. If one factor of safety exists for both sides, there's no way to approach the problem. I can think of several good examples: earthquake, wind, footfall forces, etc.