The points made in this thread are excellent and most hit the question dead on. On-road is not dead but fluctuates with the economy more so than off-road. Many of the points made why off road is more popular are very true. Cheaper start up, cheaper to be competitive, easier to learn how to drive, and can be used almost any where. On-road is more expensive and places to run the car maybe challenging in some areas to find.
My main disappointment is directly pointed at the RC magazines available in this industry. Pick up car action magazine or look at the INTERNET version of the same and try to fine articles about on-road racing. Especially Nitro on-road racing. Where are the "How To's" or any other related topic about this portion of the hobby. Sure they may poorly cover the Worlds that happened to be in the States this year and last. But the word "poorly" best describes the coverage. Relative questions about the art of setting up the car, or driving the car, or maintenance between heats and heat to finals are never addressed. It is more likely to see the question of how is your car handling? With no follow up. It is of course hard to blame the magazines totally because those that write the article run off road or fly planes.
In any case, the On-Road nitro and electric are still a part of the RC hobby and truly the main stay of the RC hobby for many years now. But to get those younger people interested in the On-Road hobby we need some things to happen. We need to be talked about in the magazines in every issue. Not as many articles as off-road of course, I understand the finances of the industry. But something every issue. We need a good entry level Nitro on-road car that is supported as only as a entry level. The 1:8th Super GT class is now basically growing into an on-road chassis with 1:8th on-road two speeds, clutches, and some cases motors with only off-road arms and 17mm tires. Keep the RTR's as they are and no add ons so new hobbyist can learn how to run and drive an on-road car and then grow from there. Clubs, RC tracks, and ROAR should hold to the rules for this entry level class as well as the manufacturers. Then in major races no pro drivers allowed in these entry level car classes. Trophy hunters will be weeded by qualifying times. If a sportsman driver has qualifying times equal to B main or better, then he is placed in the expert class. We don't want to intimidate the new hobbyist. They must run with racers at their level. If they can win at that level then a trophy is presented to a real sportsman driver.
On-Road is not dead! Just a few tweaks and we can start growing again nationwide!