I think you have hit on many common factors ...
-- There is more competition for kid's time and attention both on and off the field (other sports, music, video games, skateboarding, etc. have drawn away many prospective ball players)
-- Baseball is a game of skill, and those skills are only developed by playing ... a lot. In our culture today, in so many areas, kid's lives are totally orchestrated by their parents, and they don't have the free time to just grab their gloves to play ball all day. Thus, practice time is limited to those "boring" practices where Coach-Dad throws BP and kids stand around shagging balls for 75% of the time.
-- "Baseball is boring" and is allowed to be boring at the youth level in so many areas by leagues focussing so much on pleasing the parents of the least skilled players, and those who are really only looking for a baby sitting service; and not focussing on trying to teach ALL kids how to play at the highest level each player can achieve.
-- Many youth baseball organizations seem to be held in a stranglehold by a handful of parents/volunteers who lose sight of the fact that it is about kids having fun, and learning to love the game. In CM's area -- for instance -- the local LL has been known to ostracize kids who take lessons from non-league instructors, or play for outside travel teams as well ... to the point of excluding these kids from All-Star teams.
-- It seems that ALL sports are becoming year-round, and there is a pressure to specialize early on. "If you're not committed to the program, you can't play for our team."
I live just over the mountain from CM. In our area, I was ostracized as a LL Coach for conducting practices that were "too serious." The kids went from station to station in small groups, working on mastering skills; and then came together to practice situational offense and defense. My kids and parents LOVED it, but other parents complained that our teams became too good, and we played "too seriously". Bear in mind that our kids had a blast, and parents begged me to draft their kids from season to season.
We started a 12U travel team for kids who wanted to compete at a higher level, and further develop their skills. We subordinated the team to the local LL, and worked closely with LL officials to avoid conflicts. My wife and I were trashed in the community for "trying to destroy LL" and taking baseball too seriously. There was a push to keep my son and kis teammates off the LL All Star teams.
As a "bubble baby" in 2006 when USA baseball changed the age standards; the local leagues would not let the "repeat 12's" continue to move up with their classmates. Our son (with our support) chose to leave the local leagues, and has played regional & national travel ball since that time. He is now playing HS ball, and aspiring to play collegiately.
Many other quality players my son grew up with have left the game to focus on other sports (football, basketball, volleyball); to focus on video games and hanging out; because they have found girls and cars; and a few because they got a bad taste in their mouths from how they were treated by people/authorities as they tried to excel in the game ... helping to kill their budding love for the game.
Not a sermon, just some thoughts ...