They used to make cars without power steering, so what, people are lazy for not getting a workout when steering now?
Power steering (hydraulic or electric) vs mechanical steering is apples to oranges comparison to manual vs automatic transmission.
With the former, you're still doing the same thing, it's just easier. You're turning a wheel left to go left, and right to go right. With the later, there is one less limb involved in driving the car (possibly two - so up to half of your body), and as a result you don't have to pay near as much attention to the road.
Plus, from an enthusiasts' perspective, it's a lot more fun rowing your own and DRIVING a car vs just riding in a car and letting it do all of the work for you. I could care less if the auto trans gets me 2 more mpg. It does that by forcing itself in to being in a MUCH higher gear than it needs to be at all times. I can do that myself in a car with a manual. I'd have no problem driving down a 25 mph street in my MX5 and putting it in to 5th or 6th. The difference between me and the auto trans, is that I won't do that... because it's stupid and the car bogs like crazy. My CX5 has no problem doing it every day though.
If you live in an area where you're constantly in stop and go traffic, then I agree... I would hate a manual there too. I would also not own a motorcycle there (one of my other passions), because what's the point. At the same time I'd also think about not owning a car anyway, since cars are meant to be driven and not sat in while inhaling exhaust fumes for 2 hours a day. The other option - and the one I took - is to move away from a nightmare like that to a place that's open enough to where I can actually experience the joys of motoring.
In one generation I'm sure manual transmissions will be gone, and that's sad... and yes it is because people are lazy. Most parents can't be bothered to teach their kids the joys of driving a manual vehicle, and most kids can't be bothered to learn. I saw a story on the new a few weeks back that was talking about how a lot of teenagers now could give two craps about driving altogether, and most of them don't even bother getting a drivers license. That's insane to me. When I was in school, everyone was excited as Hell to get their ticket to freedom.