Nope, its youth sports that's killing it (not to mention video games). Every kid now needs two triple-walled bats (they look like deadpool when they carry it around in their backpack), their own helmet, two batting gloves, shoes, backpack to carry it all, AND AN ADULT TO TELL THEM WHAT TO DO!!! When's the last time you saw a pickup game in your area? Kids nowadays don't even know that "over-the-line" is. Inner city kids are priced out.
Back in the '60s and '70s we had 4 helmets for the team, about a dozen baseballs for the season (we kept one "game ball" for the whole season), nobody had their own bat, and only the rich-spoiled brat kid had a batting glove (we were all jealous of it). I rode to the park with my shoes and glove slung over the handlebars. We usually had only about one or two parents in the stands (usually a couple of dads who'd been drinking and loved to harass the ump). The coach was the guy who drew the short straw. It was like Adam Carolla says, "Who do you want taking your kids camping? The guy who immediately raises his hand? No!!! The guy who is trying to sneak out the back door....that's who you want taking your kids camping!!! (in our case, that was the guy who had to coach little league)"
However, after our little league game, we would play pickup games, (over the line if not enough players) until dark, and, I would argue, we developed our skills just through shear repetition and had WAAAY more fun.
The same is happening in basketball. Summer camps used to be for skill development. Now they are for playing games. When your kid is on a team of twelve, just what percent of the time does he/she have the ball in their hands?