Its getting better, but its a long way off. Youth development in the USA is 20 years behind what it is in South America and most of the better footballing nations in Europe.
The biggest problem is that players aren't allowed to develop in one academy, and then sign with the first team at another club. A lot of players get unlucky by their geographical location. It leads to some of them deciding that they are going to forego MLS and head to Europe, while others rot for years. Its not a market system. If it was, teams that used these players in their first team would compile the best talent and teams that didn't wouldn't compile the best talent.
Some players and teams are trying to test MLS on this, and break the rules. MLS sets a lot of rules, but they almost never enforce their rules. There's definitely a loophole there that is starting to be used, but this shouldn't have to be done in that type of way and its not being done on a large scale year. If a player comes up in the academy of LA Galaxy, Atlanta United, New York City FC, Seattle Sounders, and they don't think they are going to be able to get a fair shot in their club's first team, they should be allowed to hear the recruiting pitches from FC Dallas, New York Red Bulls, Philadelphia Union, Real Salt Lake.
The league also doesn't care about youth development. They see their main selling point as the infusion of mid 20's transfers into MLS. Tyler Adams or Alphonso Davies are way down their discussion points list. The improvements are coming from the fact that certain clubs that don't have unlimited funds realize that developing and then selling youth players is a profitable business. There's also an internal culture within these clubs that youth development is a much talked about thing within the country. Most teams don't want to be seen as falling behind in a key discussion point, regardless of whether they plan to ever use those players in their first team. The same happens in Europe. Bayern or Barcelona never use their academy players, but they compile youth talents for prestige.
At the same time, teams are starting to dislike how players they've developed in their academies are going to Europe for free. The ramifications from that are teams signing players at a much younger age. Chicago Fire signed a 14 year old yesterday because they were going to get nothing for him when he moves to Europe in two years. FC Dallas went on a signing spree a few years ago of their academy players when McKennie left for nothing to Schalke. Its a complicated issue though because some of these players would not have the same level of foreign interest, if they weren't free.