They did get updated. They're called "point and click" or "Adventure" games. Think Kings Quest, Monkey Island, Day of the Tentacle, Broken Sword, Sam and Max, Myst/Riven...games like that (and ooooooh Discworld

) or Even "Return to Zork" (Theres quite a few Zork games actually)
Traditional "Adventure" games arent really being made anymore as they've evolved into the sort of games you can get on Playstation etc. - like Resident Evil or Obscure - games that combine puzzle solving elements with Action and rad 3D graphics. I was actually plaing Buffy:Chaos Bleeds today and thought how similar it was to an Adventure game - get object, use object, solve puzzle, progress in game..then realised it was made by Vivendi, aka Sierra, who pioneered the Adventure Game.
old skool adventure games ARE still being made in a sense though - by Fans who remember their glorydays. if you go here :
Adventure Game Studio You can find both the programs required to make these games and a whole bucketload of Fan Made Games.
Go here :
Telltale Games to download the official Bone Game...it covers the first storyline in the series and they're currently working on the sequel.
And Finally go here:
Silver Lining for info on the Vivendi approved Kings Quest sequel to be released later this year.