Which generation was it that people started getting hyped up about Elul? It strikes me as recent!

Was it always like this that people went crazy over Elul or is it part of the world is getting frummer syndrome?

From Rav Avigdor Miller ZATZAL - What are the three main facets of Rosh Hashana? These are the elements of the Yom Hadin ("Day of Judgment"; Rosh Hashana): To concentrate on the fear of Hashem. To concentrate on the honor of the nation to which we belong, and individuals too. To change ourselves so that we feel Hashem is always looking at us, and because of Him we are going to change our ways and become worthy that He should give us the final judgment in our favor.

To go crazy as you put it is indeed part of the lets be even frummer syndrome. However the teshva process during Elul is mentioned even in the Rishonim, see the Tur for the acroynm of Elul. But i think that a person who is a Bar Aliyah and is anyway constantly seeking to strive, should not be taking on more things during Elul. Because for the same reason that he dies not take on more things during the year, because he has a different plan how he plans to Shteig, so too will an extra unneeded kabalah hinder his Shteiging during Elul as well.