Don't know about people in general and their interests, but in my experience, good students have never been all that common, even when the martial arts were a big fad.
Sometimes I feel that martial arts in popular culture have steadily lost respect over the years due to the endless stream of really cheesy movies, and the way the MAs are portrayed in pop culture. Then there is the increase of interest in competitive martial sports... For a while I thought that was a good thing, but nowadays there are a gazillion mma warrior-wanabees and keyboard commandos out there dissing traditional martial arts. I respect MMA, Muay Thai, BJJ and other competitve arts practitioners ... a lot. But, spare me the loud-mouthed, couch-potato fanboys. Please!
Finally, there are the chains of McDojos churning out hordes kiddy blackbelts, like my step brother's kid -- the 12 year-old second dan who has since quit TKD for "cooler" sports since he's in junior-high now. Some styles are so associated with kids programs that I've heard them referred to "ballet for boys". Kind of disrespectful to both the martial arts and ballet. Ballet -- honestly, I really respect ballet. I knew a professional ballet dancer once. Talk about discipline and hard training!
Anyway, it all kinda adds up to the point where a lot of people see the martial arts as a big phony joke. Can't say I really blame them.
As for myself, I'll keep training with a few guys in a park or garage. I'd like to have a few more students, but only if they really want to be there. I'm sick of the type who drift in and out, skip class without a good reason and don't give a good effort even when they are there. But you know what? I'm pretty happy with the group I'm in, just as it is.