I have noticed a large upswing in modelling, but not in the traditional sense. At my local hobby shop, Warhaamer is getting quite popular. For those unfamiliar with the game, it uses scale models of fantasy or Sci-fi armies to fight battles on a large playing area. Basically, it's a large-scale Risk game. THese models are getting very popular, and I believe it's due to the fact that after creating and painting these masterpieces of plastic, the kids can actually use them creatively instead of just letting them sit on a shelf to be admired. Each kit has a specific purpose in the game, and it makes them more appealing to the younger crowds. In a nutshell, they're models used as toys.
Yes, Dan, the kids have money in their pockets to spend, and they spend it freely. I ran into a 12 year old kid while doing a demo game, and he asked me what he could use to improve his army. When he came back the next week, he had 2 of everything that I had mentioned to him! When I asked him how he could afford over $100 worth of miniatures, he just said that he used PART of his allowance for the month. I remember scrounging and saving everything Icould for 3 or 4 months to buy my next cheap kit!
Sorry I went on a bit long. The main point is, the interest is there, it just has to be re-directed a bit.
demono69