As I recall, those story problems of my youth were relevant to the real world. My personal world of my youth was partly based on my own fantasies.
It's true that there is no longer a need for American students to have a grasp of the English currency system; their pounds, shillings and pence. But the old problems about ratio and proportion, relative speed of trains, budgeting and simple geometry are still all relevant.
I am staggered by the apparent lack of understanding, by many, of 3,4,5 triangles, powers of 10 and other IMHO simple concepts.