I was in the middle of the whole thing, temporally, if not geographically. I graduated high school in 1968, which was quite the happening year.
No one ever called someone else a hippie, except ironically; as DMark said, that was a term invented by the press. Or at least popularized by and taken to the bank by the press. But since we all basically know what we’re talking about, and terms like “head” have long since fallen into disuse, it’s as good a term as any.
No, I wasn’t one. I had long hair, took advantage of the pill (but didn’t sleep around), did some drugs, loved the music, and hated the Vietnam war and the draft. On the other hand, I had no particular use for the idea of revolution, did not have leftist politics (I’m more to the left now than I was then, in a lot of ways), didn’t really like drugs, didn’t think communal living was all that hot an idea, and did not think that having money was all that bad a bad thing. I was, I think, a fairly normal middle-class college kid.
Very few people I remember had any ideals that were particularly hippie-ish. What some did have was an annoying tendency to mouth a bunch of vacuous crap, and when you disagreed, dismissively say, “Well, that’s your thing” or some equally annoying phrase that meant “fuck you, idiot.” There was very little knowledge floating around of where the whole thing came from. That which we associate with hippies grew out of the beat generation, but with more and stronger drugs, and rock music instead of jazz and, of course, the pill. I guess it became a kind of anarchic mass movement mainly because the world of the 50s and early 60s was so mind-numbingly drab, and young people figured there just had to be more fun in life. So, loud colors, loud music, lots of sex, and lots of drugs. But it was mostly an illusion, and almost everyone I knew saw it as such. It ended because there was nothing, really, to sustain it. A few people maybe got off living in shit, and a lot more got off on being as hedonistic as possible on mom and dad’s money; but in the end, most people just had to get out there and work. And then, playtime’s over.
There were some really good things that came out of it all, of course. The civil rights movement predated the hippies, but from that we got it into our heads that equality was probably not a bad idea. The women’s movement and environmental movement were outgrowths of the 60s that, I think, have had a net positive effect on society.
There were also nasty things, like abusive and murderous cults, which seemed to swell exponentially with people who’d gotten too strung out on drugs.
If any one thing is most responsible for the demise of the hippies, it was the end of our involvement in the Vietnam war. Without that rallying point, the political and communal aspects of the whole thing fell apart.
And no, I don’t think Altamont had anything to do with anything. It was a clusterfuck, nothing more. Kent State happened after Altamont, and that galvanized people of my generation like nothing before it. Where documentarians get off calling Altamont some sort of bookend I don’t know.
In the end, I think America just settled back into what it’s always been. A number of writers in the 19th century (and later) noted that America was a place where you could make a fortune, but where nobody gave a damn if you succeeded or failed. The importance of making money (and flaunting it), the importance success vs. failure, and the importance of not having much of a safety net have always been part of the American fabric, and these are all opposed to what the hippies claimed to be about.