There was never anything modern or absurd about quotation marks, air quotes are a perfectly reasonable way to show something is a direct quote while talking, imo. :shrug:
Well first of all, air quotes are almost always used to denote scare quotes (or sarcasm), I have never witnessed someone using air quotes to indicate quotation. Second, there
must have been a time when quotation marks were something new (i.e. modern). As for absurd, are you trying to say that there is something absurd about "lol"?
And finally, no, air quotes are as much a reasonable way to indicate scare quotes/sarcasm in speech as is saying "lol" instead of laughing. Intonation is used for that in speech, not wiggling your fingers.