Is there a particular reason why space flight-sims died out by the turn of this century? I mean, TIE Fighter was huge.
Since no one else brought it up, there is one game that killed the genre:
Freespace 2. It went way over budget, had a big marketing campaign, and in its first six months sold well under 30,000 copies. While well-regarded, its sales were just plain terrible. It scared most of the industry off of space sims.
That said, we still got some good ones after that.
Freelancer is one I've been playing through, and I find it very good.
Tachyon: The Fringe is another excellent one, although it's not terribly open-ended. You get to pick which side of a war you want to fight on, and there are a lot of optional missions, but that's about it.
Independence War 2: Edge of Chaos is another good one, although its control scheme is atypical. It uses Newtonian physics, although it has a "flight assist" mode enabled by default to make controlling your ship a bit easier. You still cannot turn on a dime like you can in most space sims, so in that sense it is a very challenging game--you have to pilot very deliberately.
Anyway, yeah. FS2 killed the genre, for the most part. Very sad.
And I wish they'd make a new
Quest for Glory game/series, even if they started over with a new character. I want to see more of Glorianna.