Why then are the US Ladies dominating everything in women's gymnastics? I imagine gymnastics is still popular in Russia but the US has so much depth that the second team could probably win a team medal at Worlds.
Honestly gymnastics (while still not great) offers a higher level of return on a family's investment than figure skating. Both are very expensive sports and if my child had a lot of potential in both at least there are college scholarships at the end of the gymnastics tunnel (if you reach the elite level or level 10). Likewise, hockey is an expensive sport, but there are a relatively high number of scholarships available for women's hockey compared to girls that play the sport. Tennis is another expensive one, but if you reach the higher levels of the sport you can make a solid (sometimes great) living.
The point is, if you are an American kid with a ton of athletic talent there are a lot of avenues you can pursue, and most of them make more financial sense than figure skating. And this is without discussing issues of home schooling, socialization with peers, and focus on education (I've seen several disturbing comments from Lipnitskaia on this topic).