It seems like were setting more fitness records from running to lifting every year and that the over all health of the public is much better fitness wise. Is this true?

Broadly speaking, yes. In terms of overall health we are living longer and staying healthy for longer, a trend currently advanced primarily through medical research but historically also through better nutrition and living conditions. In athletic terms we are also stronger, faster and "better" than ever, largely due to better understanding of nutrition and further developments of training programs.

Like could athletes in the Ancient World compete with our current athletes?

In anything but highly specialized events where skill far out-weighs physical ability, no. They could not. Athletes from just a century or a few decades ago would likely not be able to keep up.