Great work is great work, and as such it should definitely be studied and appreciated, regardless of how old, or new, it is. But, at the same time it is also important to do the general bulk of one's study by studying the newest examples of whatever art you're in. If you're an art major, studying Rembrandt, Da Vinci, Van Gogh (who was considered a hack in his lifetime) etc is definitely time well-spent but there are scores, and scores of artists to come along since then who've displayed far more talent. It's just the nature of the beast. Art evolves. Med students wouldn't be trained to perform dissection with a scalpel from the 1890's. Film students and apprentice directors etc don't spend a huge portion of time (over the totality of their education) dissecting the work of silent film directors. Art evolves and improves over the generations, as it should and if its students study correctly, it has no choice but to. Though, the progression with writing and writers is a bit harder to define than with the visual arts, etc.
Great artists of whatever field should and do spend the majority of their study time by studying artists in their own generation. It's common sense. Psych majors are given the primer on Freud, Jung, Adler, etc because it is important to study them, and it gives a foundation. Truly cutting edge work is spent in the present.
So, in answer.. Studying Hemingway, etc WOULD be like studying the flying nun while attempting to create Desperate House Wives ONLY IF that person ONLY studied Hemingway, Austin, James etc to the exclusion of his own generation of authors.
If you want to create a Desperate House Wives, you certainly wouldn't do the bulk of your screenwriting and film analysis on movies from the 20's anymore than a writer wanting to create a Clancyesque thriller should do the bulk of his work studying Dickens (who was considered a hack for a portion of his career). This doesn't mean that studying the past masters isn't important. It is and always will be, but the bulk of your study should be spent analyzing great writers of your own generation.
A reason I am writing this is because, the mistakes people usually make lie in ignoring the past in their studies, but there's a smaller portion who, oddly enough, ignore the present. (I'm not making any assumptions or implications about anyone here, this is just something I have noticed in different areas of my life)