Being newer to the hobby than most, and living in the Northeast, I think the hobby is doing well or strong.
I'm a member of 3 clubs and they have between 20 to 50 active members in each.
There are two monthly shows that I attend that are always busy, admittedly, 1 had less dealers during my visit last month, and the second has their first show this weekend.
The local bi-monthly auction is well attended and realizes good prices.
If these people are all chasing financial rewards, the hobby is in much better shape. If they're collecting because they enjoy it, the hobby seems vibrant.
I've gotten to the point where I've found my niche and am focusing on those items and having fun.