To rossjr,
I don't doubt AMT's half-hearted kit designs were a factor in their declining sales of SF-themed kits. I've dealt with more than a few and can see why a lot of people already into modeling would avoid those kits. I just don't think that's the primary factor. Maybe it's just happening in my area, but I've noticed fewer and fewer new modelers of any kind. The main reasons I've heard are "I just don't have the patience" and parents not allowing their kids to start the hobby because they're concerned over intentional or unintentional exposure to chemical fumes. The only big sellers around here in the past 8 years have been the Gundam kits, which I'm told are rarely glued, let alone painted, by the people I've taked to.
All that aside, there's another reason I made my statement. I've attended an SF convention in Columbus ( MarCon ) every year for over a decade. The first few years I was there, the art show had several models on display, resin and IP. The last time I saw a model there was 5 years ago. Since then there have been absolutely no model entries ( which will not be the case next year, I've already seen to that ).
It's not just SF modeling. When the Challenger was lost in 1986 there were a lot of kids wanting shuttle kits to build their personal tribute to the astronauts. The local hobby store braced for another such wave of interest after Columbia. Not a single one of those shuttles has sold, but tons of Collectible Card Games and the like continue to be strong sellers. Even the sales of military-themed kits has been minimal in this new age of patriotism.
More and more people, young and old, have just discarded the idea that building something with your own two hands can be rewarding in any way. This, combined with people leaving the hobby, is why I have sometimes referred to us modelers as an "endangered species."
As for the success with Fine Molds, I'm glad to see that someone is finally producing good kits, but the hobby can't grow if those kits aren't available at the local toy or department store. The kits you mention, including garage kits, aren't readily available to a 10-year-old who wants something from Star Wars. Of course, that's assuming that the kid's definition of "hobby" extends beyond Nintendo.
Sorry to take up so much space.