I have heard what you are saying many times too but I still don't get it. I do understand that the Russian skaters of the 90's came out of the "system" but in greatly varying degrees and durations. Plushy was only in the system until he was 10 or 11. Yags would have been out by the time he was 13 or 14. Oksana was out by the time she was 12 and only Galina kept her from a much different fate.. Only Petrenko and Urmanov were in the system for the majority of the early career. Iilya might be half and half but when he won the OGM in '98 the system had been done for quite a while. The stories we hear about Oksana and Plushy are not golden stories of a "system" training and nurturing young athletes. There lives were harder than most of us in the West can even imagine. Plushy became great because there was NO system. He made a decision to become a great skater and he did it without the system, in fact he did it like a very poor child from the USA would have to do it. Sacrifice and hope and dependence on kindness of others. Oksana had it tough too. I don't know about Yags or the others but by time Plushy won in 2006 the "system" had been gone for a decade.
I wish I knew more about this, and if I have some dates or timelines wrong I apologize for not researhing it.
But to me Plushy's story is one of success on his own terms. There was no system for him for the bulk of his career. Those days ended when he was very young.
I think the Russian men only began to become so great once they were free of the system. Hunger and a drive to succeed is mighty powerful. Some might say more powerful than winning for the "system"
Yagudin/Plushenko/Kulik all of them were first discovered by Soviet scouts. I.e they tried out as kids, and were given free lessons because they showed they had potential. By the time the Soviet system collapsed, their potential was already identified, and coaches like Mishin choose to work things out so they could continue skating.
Mishin for example, coached Plushenko for free....They were all also trained by former Soviet coaches, coaches trained in the Soviet system.
If you look at Russian skating, now, you'll notice that they haven't had a single World Champion who was not identified by the Soviet system.
I.e it's one thing to invest in a student like Plushenko who clearly has potential. And it's one thing to pay money if your kid is someone like Alexei Yagudin whose landing triple axels at 13!.
It's another thing when your struggling with cash, to give free lessons to every kid who wants to every new skater, and/or to pay initial lessons for your kid to try out.
In fact Illia Kulik said so much when he said that he'd have never tried skating, if it weren't for the system.. Witt has said similar things about skating in East Germany.
After the system collapsed a lot of the good coaches left for the West. And a lof of the schools that discovered people like Plushenko, were closed down. In fact Plushenko's rink were he first started became a car lot. Yagudin's old coach left for the West.
Yagudin/Plushenko they were already in the pipeline. But the problem was that there wasn't a system in place to discover people after Yagudin/Plushenko.
As for why no champions before Petrenko, there was actually A Soviet Male World Champion before Petrenko (I don't remember his name) If I understand correctly for awhile the Soviets put their best skaters in pairs/dance. And it may have taken them a while to figure out singles. But they were getting better under singles, given the talents that were clearly being developed. (Petrenko! Urmanov!)
Seeing as I said Russia has had NO world champions that were not discovered by the Soviets, I don't think we can say all of their success is because the Soviet system collapsed. Plushenko for example absolutely would have had a desire to win under the Soviet system. There were tangible benefits under that system to being a Champion athlete.