Yeah it's gone there a little bit. I guess it's just another sub genre like boom bap, trip hop, trap etc. It's definitley something I relate to though because I grew up in the cassette deck, VHS, cartridge video game era. Shit just resonates with me for the same reason Vinyl/Soul shit resonated with the beat makers the generation before I guess. I also find it extremely deep in terms of mixing theory and technique. It's all about simplicity and execution which I also like.
With trap, trip hop etc the sounds are mostly VST so mixing is pretty simple in comparison, all your signals are clean to begin with and you're aiming for a clean sound in general... With lo fi you really have to get creative in your approach and use gimmicky tricks to get shit sounding as dirty and twisted (but pleasing) as possible. I digs that.