Firstly, if you haven't seen Rabbit proof fence, I urge you to. The movie shows a pretty clear picture into the politics.
The problems Indigenous people face today are still because of the culture which was taken from them. It wasn't just the stolen generation.. as in children taken from their families, it was the way they were forced to speak English (it was against the law to speak in their own language) and dumped into missions and reserves altogether, so they had even more difficulty communicating with each other (there is a different language for the different mobs, depending on where they come from) so their individuality was lost. When the government decided you couldn't kill off Aboriginal people or hide them in missons, they decided to assimilate them into White culture. So they began taking the half cast kids away to be "brought up" by white Christian people but they were used like slaves, cleaning houses and babysitting for 20 cents a week, they only got skills to work for minimum wages. These lack of skills were all that could be past down for their future generations. In 1967 when the referendum happened and Aboriginal people were seen as citizens of Australia and were able to vote and fight for fair treatment and real wages etc they were put in the position where the only way Aboriginal people could get an education and a decent job, was to go to mostly white schools. Imagine sitting in a school amongst all white kids who had been brainwashed and had it ingrained into them from their parents and teachers, that black people were lower class.
Most couldn't wait to leave, so of course, they didn't bother going to school, never got their educations, stayed with their families and got bored, drunk, and run a muck.
As Occy mentioned, the nutrition suffered as they had all of this food brought in that they weren't used to or weren't educated on, and ate the wrong stuff and became sick.. got diabetes etc (lets not forget the diseases brought in 220 years ago also). Being rural, it's not as easy as going up the road to the hospital and getting proper treatment, and education on nutrition.
A lot of kids were looking after their Aunts and Uncles (another reason they didn't go to school). How degrading for Elders to not have the means any longer to teach their kids, and to have them sick, alcoholics being looked after by their kids who would grow up to be in the same position as them.
There's so much more... I could go on and on about what they have and are going through. the education system is failing them. They don't have proper health care. They are bored, degraded, angry and stuck in a rut.
It's only very recently (40 years ago) that they were even classed as HUMAN. Seriously.. they were classed as fauna for over 100 years they couldn't just waltzed into white society in 1967 and have Non-Aboriginals forget all they had been taught to believe their whole lives.
Aboriginal people stick together because that's where they feel accepted. They survived perfectly fine for 40,000 years without pretty houses and clothes and churches.
Imagine if we were invaded by the Taliban and forced to wear Burkas and as women having to be oppressed by men like under Islamic laws? We aren't used to that culture.. we have freedom of speech, we wear what we want, we watch TV, have jobs, go to school.. it's our culture.
Do you think if we had to change to Islamic laws, in 200 years time we will have gotten over it and be living happily and peacefully and celebrating Auslamic day on the day of our invasion?
Not a chance.