I guess I see your point, Magnum and simon17. Lett can't be talking to the next generation because, according to the "overlapping" definition of the word, they don't exist yet.
A potential resolution to this linguistic quandary could be found if we imagine that, in his mind, generations are defined as fixed blocks anchored to the 1914 teaching. Generation 1 would be the block of anointed ones that saw 1914 and the later anointed ones that saw those earlier anointed ones (). Generation 2 would include anyone born after the death of the first part of the overlapping generation -- that is, the ones who saw 1914. So children born after, say, Fred Franz's death in 1992 cannot possibly be included in Generation 1. Technically even ones born long before 1992, but not anointed by 1992, are in Generation 2, which means that from the standpoint of a Generation 1er like Lett, they are in fact "the next generation".
Don't hurt me, I'm just thinking out loud here.