Funny, the "peak" in racing popularity more or less coincided with the economic bubble, when everybody was spending play money as if debt and responsibility didn't exist. The bottom line is very clear IMO: racing just got too expensive.

Was it always so? Don't know.. But you don't need companies releasing entirely new models every season and a half, new tires even more often, body styles, new engines every season, Kings Headz this, M2C that.., entry fees going up by the year, etc.. The constant bombardment by the manufacturers and other companies with new stuff is also a big reason that, whenever we buy a new race rig for €1200 or whatever, we now know more than ever that even if you only run a liter through it, you'll be lucky to get half your money back a month later.... Here in Germany you practically need a caravan for driving around the country(fuel is about €5,50 a gallon.. Do the math..) to the different tracks if you want to be really serious..(and not limited to the lame-ass local track which is closed half the year..) But go to a race, and there they are(or were..) - the parking lot full of caravans.. Which is all just beyond reason... So what's probably happening is the tide is receding, and going back to where mostly only the (very) dedicated and rich few participate anymore..