The Cleveland Plains Dealer published a rather extensive survey article on wargaming recently, by Leila Atassi. It arrives at the same conclusions many articles of its ilk arrive at; aging gamers, competition from other media outlets, a changing audience, the glory days were in the 1970s, and yadda yadda.
The full text is HERE (you will have to give them some demographic info to see beyond page 1).
Certainly the hobby is not what it was, it certainly IS a smaller place than when I was a kid. On the other hand, I've never seen such an amazing choice of figures in my life as we have available to us now. Name a historical period (for that matter, name most fantasy or SF themes in print) and you will see a wargaming line devoted to it. Or multiple lines.
If this is the twilight of the hobby, it certainly is an easier, far more accessible hobby than it was in the beginning, when I was playing with Airfix figures (the only thing I could get my hands on in those bygone days).