Disco for me was like anything else: There was good stuff and bad stuff. I thought Jimmy Ellis, the lead singer for the Trammps, had an extraordinarily powerful voice (e.g., "Disco Inferno"). Some of Chic's stuff was very sophisticated, and I thought Donna Summer's " I Feel Love" was a ground-breaking track that anticipated much of what's going on these days. It will still fill a dance floor in three seconds flat if you sequence it in a set.
I find much of today's dance music far from watered-down disco. Once you start checking out the various mutant strains - techno, tech house, modern trance, etc. - you'll find a rich variety of music. some of which is extremely sophisticated.