I don't think they care less because of some personality issue, but an incredibly high percentage of them live outside the city. In many American cities, for example, city workers are required to live in the city. I don't know how many times I've been told by a city worker (let alone a Toronto cop) that the city is a cesspool.
I agree that there has been a large shift. To a certain extent, it's the city's visible deterioration. The streets and such are in worse shape now than they were in the past, and Toronto really seemed to be an ascendant city. It's outside my realm of memory, too, but that's the impression that I get. In many ways, we're much better now than we used to be. People seem to forget that in 2001, there was a homeless person on practically every downtown block. That has changed dramatically for the better.
One of the things that really worries me is the crazed and irrational crime paranoia that seems to have emerged. I know a large number of people from 519 and 905 who are literally petrified to go to downtown Toronto because they literally believe that there are gunfights on the streets on a daily basis. They absolutely refuse to visit, even to change trains at Union or something like that. I know that sounds insane to people like us who live in the city but it's a real perception out there. I don't know exactly what triggered it aside from the endless Toronto Sun drumbeat but I think Jane Creba was a real turning point. If this continues to spread, to a certain extent perception can become reality.