Let me open saying playing high-quality games at the comfort of my home beats having to move to the arcades and spend a small fortune to beat a game.
This said, there was a social aspect to arcade games which the faceless matchmaking of modern games lack. It was also a nice spot to meet with your friends and show off your skills, or in my case, lack of it.
On the technical side, some of the most complex machines with moving parts really can't be replicated at home.
Still, arcades were a product of it's time. I feel sad to see something I enjoyed slowly dies but today we have portable gaming devices and the internet. It would be nice if we could have both but I'm happy with it's replacement.