Well, that's what happens when you take what's essentially a small town area (Biloxi and Gulfport were small, as cities go...) that had a few good restaraunts, plunk down a few hundred million in casinos on top of them (pretty much literally in some cases), and use a hurricane to stir every few years.
The way it struck me (as I was only mid-late teens during the casino boom and fairly unconcerned with it at the time), the few good restaraunts that survived the casino on-the-water buyouts got wiped by Katrina.
The Shed is far enough away from the strip (and the water) that the land it sits on was never in any danger of being bought for development for casinos or hotels or such... and while it took on about 5' of water during Katrina, that just added to the decor (they have the Katrina waterline marked on the wall as you come in).
Yes, there's a Waffle House every half a mile (or thereabouts) on the strip now. Yes there are combination KFC and Long John Silver's fast food places down there. Yes, you have to know where you're going to get something that's not massively overpriced or cookie-cutter mass-produced.
I don't view The Shed as the last of a dying breed... but the first of a new crop of excellent eateries. At least I hope so, because that area is pretty much, as they say, "when I go there, they have to take me in," when I'm not in Va.