Here at the San Diego Bicycle Club, we still promote racing in our community with bottom-up/grassroots advocacy and mentorship. I'm on our club (of ~1,000) BoD for the Men's 1/2/3 team director, and volunteer quite a bit to host events on and off the bike to do what we can to recruit new members and retain existing ones. From the top, our club prioritizes racers and has budget for reimbursement and clothing even all the way down to the 4/5 level with some minimum requirements, who does that???
I do agree with what you're saying on a macro level, but there are at least some organizations and clubs out there that are committed to the cause. We host one of the longest running SCNCA races (Barrio Logan GP) and a local TT series that are still going.
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"Your beauty is an aeroplane;
so high, my heart cannot bear the strain." -A.C. Jobim, Triste