I don't post here often but have followed the forum and have been an avid skier decades. I dropped out of the tournament skiing scene shortly after college for several reasons.
I think the recreational skiing scene is still alive, but it's diverged significantly from the tournament scene. From my perspective, the competitive skiing scene has shot itself in the foot over the last 15-20 years. In the pursuit of perfection and the perfect pull, the group has continued to innovate and invest (speed control, boat design, lake design, etc) without enough for consideration for how it would impact the accessibility of the wider community. These improvements have come at a significant cost, but the people making the decisions had the resources to afford them. The low cost skier was effectively cut out in the pursuit of the perfect pull.
For example, Zero Off was a huge improvement. However, it's a design that could not be retrofitted to older boats like the previous generations of speed control. In hind sight, was it wise for the sport to fully standardize on a speed control that literally could not be retrofitted onto older boats? This was a big part of the divergence between rec skiing and tournament skiing. It created a huge barrier for rec skiers with an older boat to go into tournament skiing and most just decided to leave tournament skiing behind. Probably would have been smarter for the wider community to say "Zero Off is great but we aren't standardizing on something that cannot be retrofitted". I'm sure the boat manufacturers were all happy to adopt it in their short sightedness. However most companies favor immediate boost over long term stability.
Then there is the move private ski lakes. In many cases, the people on these lakes want to host a tournament so they can set their scores on their home lake, but they really aren't that keen about having the "riff raff" come to their lake either. As a public lake skier who tried to come from the outside, it was a relatively cold experience. Basically got the feeling "you don't deserve to be skiing on my lake. You're only here because I have to let you in to hold the event". I'm sure others have had a different experience. I believe the outcome likely depends mostly on your ability, rather than your character.
Additional to this are the challenges of putting a course on a public lake. It would be easier to get congress to agree on immigration than it would to get a permit for a permanent ski course approved in most states. A significant, and passionate, contingent of the community left the public lake scene for private lakes leaving the public skiers with less representation and power in numbers. From my view, the tournament skiing crowd doesn't engage much in the affairs of public lake skiing.
For us recreational skiers, for the most part we are just as happy using a boat decades old as we would be with the latest and greatest. Everything the tournament ski crowd demands from their boat just doesn't materially change the rec skiing experience. Combine that with astronomical prices and why would the average rec skier upgrade their boat?
Decisions are being made by the select few in the pursuit of perfection without enough consideration for accessibility of the wider ski community. All this creates a smaller and smaller market for new ski boats. Obviously just my opinion.