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You're forgetting the simplest reason why it's fading away... There is no 'immediate gratification' for viewers!
Watchers of Football, Baseball, Hockey, etc... get a 'reward' with a real measurable outcome every 3 downs, every 8 pitches or every shift change! In other sports that dominate ESPN, the actionable changes are not just REAL AND MEASURABLE (like positions in a race are), but they are FULLY VISIBLE because the cameras catch and show ALL THE ACTION on every play. It's not spread out over a 1 or 2 mile track... it's all within a 300 to 500 square foot area!
THAT is what people are missing with racing... whoever the network, it's just impossible to show EVERY PASS as it happens...
It's not that racing is a bad sport, it's simply that it can not compete -for the evolving immediate=action-starved american sports fan attention any more.
The product (racing) is as good as it's ever been... at least that's what the statistics tell us about passing, lead changes, etc.. The chase is the most competitive ever... but sometimes you need to look at the AUDIENCE to see if it's desires and attitudes are changing.