IMHO, baseball is declining in numbers partially because of people like us and our kids. Kids with "real" passion for the game and above average skills combined with parents who provide the "outside the box" tools and resources have created a wide disparity in talent, and as a result, declining numbers. The one thing I have noticed in the 30 years of sports interaction with kids is that, in general, besides kids having more entertainment "options" is that they have less "killer instincts" than preceding generations. When the separation of skills widen, so does the interest kids have to play and grow with those more talented. I think that can be seen when you look at the difference in respect and camaraderie between travel team players and those same players on pre-HS and HS teams. This not a rip on the travel team players because they are usually the leaders on those other teams, but, those "fill" players on the other teams often feel abandoned and inadequate thus dropping baseball as an activity and replacing it with one where talent differential level is not as great.
Personally, if that is a cause, I can live with it because I'm more than satisfied with the personal and mental skill sets that develop with baseball passionate kids. The other kids, they will find their "nitch", and will do fine, but competitive baseball will not be on the menu.