"it just requires imagination on the part of the referee (GM) and players"
This is where so many younger people lose it... through computers, movies, video games, and "modern role-playing systems", they are so used to being spoon-fed all data and images that they have lost (or never developed) the capacity for true imagination.
A few years ago, Aviation Week & Space Technology magazine (~2002, if I remember right... I can't find my copy of the article right now) ran a report, which detailed the findings of a study comissioned by Boeing and several other aerospace firms.
The study was looking at the steadily shrinking numbers of US-born research engineers entering the field, and the dissatisfaction with the performance those that did by their older peers. The new engineers seemed to be an exceptionally unimaginative and non-creative bunch, and they wanted to know why.
The report found that the capacity for creative imagination was formed primarily between 2 and 5 years of age, with the cut-off for development of an imagination at around 10.
It also found that there was a direct correlation between lack of exposure to visual media and imagination... the more visual media (movies, tv, and "early start" computers) a child experienced at an early age, the lower their imagination scores.
The less visual media a child was exposed to, the greater their creative imagination... due to having to, from an early age, form images and pictures in their own minds of what is going on in stories, etc.
The same correlation was found between "structured play" and "free-form play"... having to come up with your own amusement was, amazingly, a powerful force in developing creativity.
To get back to RPGs, with today's society, creativity is less common, as reflected in the current crop of "everything is here, with lots of illustrations, just follow the charts and it is all done for you" mega-rules games.
That is why many of todays gamers don't like CT... it requires them to create, not just read the rules, scenarios, and results of rolls from the books.