I believe the start of the downfall is 2 fold. When I was in high school, it seemed like every other kid could list their parents home components--right down to the stylus. Then, the walkman came out, and for the first time, convenience superceded fidelity. That was the start. As time went on, home cinema came into the picture which was the saving grace for many speaker comanies. One 5 ch reciever would be sold, and now the speaker companies sold 5 speakers and a sub instead of 2 speakers. The industry started to eat its own young with $199 home theater in a box--and that was the major downfall-For the everyday guy things were made too easy and too cheap.
Music has also changed. My humps, my humps, my lovely lady lumps got nominated for a grammy (WTF???) and then there is rap--enough said. I believe there are less people who care cause music was made too covenient, and we have a whole generation of people who dont know what musical instruments sound like, so why would they care what a stereo with 2 speakers sounds like.....I will go on record as suggesting there may be hope, as it seems to be getting trndy to have a turn table again and hopefully it may ignite the passion for some..........