I think there is room for both in the hobby. I too really enjoy building, but I also have quite a few ARFs that I like to fly. Some of the newer foamy RTF birds are really impressive and fly fantastic. By lowering the initial barriers to entry, ARFs/RTFs are bringing new people into the hobby. Franky, without the ARF/RTF crowd, there wouldn't be much of the hobby industry left.

There is still a contingent of kit builders out there, and as Bedford pointed out above, even as new kits become harder to find, there is always scratch/plan building for us diehards.