As far as Neo music, one of the best tracks ever is Todo's stage theme from AoF1.
It just really conveys fighting spirit, and while it was rehashed later for the Kyokugen teams of KoF, it never sounded as good as it did in the original.
Koji Kondo and Yuzo Koshiro definitely have ALL the pull in this discussion though.
I mean, you can hum the SMB theme to ANYONE and they'll know what you're humming, in damn near every corner of the civilized world. That tune belongs on the next Pioneer mission capsule or whatever. Yuzo made incredible beats on what everyone considered shitty sound hardware...made that sucker breathe and spit fire on game like Revenge Of Shinobi and Streets Of Rage.
Nobuo Uematsu deserves as massive shout as well. The FF series may never have had the same kind of magical appeal without his amazing scores, especially in the SNES days. Such emotion conveyed through such technologically meager means.
I think game music is fast becoming a lost art or an afterthought. Now that digital audio is standard, many times the soundtrack is just some throwaway thing they have some studio musicians cough up, or it's the shitty EA Trax method of whoring out licensed tunes from overexposed FM bands. I mean, yes, something like Def Jam Vendetta kinda only exists as a pre-packaged product to push those artists, but can you imagine a similar game with music by Yuzo ala Streets Of Rage? That could be awesome.
Yes, game music is one thing that definitely hasn't progressed since the technological advances in next-gen hardware. I can count on one hand the amazing soundtracks I've heard in the last five years. Even most releases from Nintendo, like Mario Kart Double Dash, are really bland sonically. Mario Kart (especially the SNES one) had incredible music before, and now it just feels really placeholder and lifeless. Or you get lame licensed J-pop techno garbage like in Initial D. Ridge Racer used to do that sort of thing correctly.