I think that's right on the money..
But I also think that this emphasis on "sportliness" will mean a continued decline in interest on the part of the general public. If a sports fan is truly into the sport of it all, he or she can watch women's golf, tennis and marathons. Where does figure skating come in?
In the U.S. skating was already starting to fall off in terms of public interest in the years when Michelle Kwan was a world-beater and Sasha Cohen was a rising star. So I don't think the problem was a lack of U.S. champions, nor a lack of skaters who could combine sports with "art."
Anyway, I agree 100% that people are not as interested as they once were either in little girls wearing cute costumes or in mature ladies in graceful poses. What I am afraid of is that as we take this aspect away, the sport that is left will just not be able to compete with other sports for fans' interest. If you want to see strong athletes running fast and jumping high, you can go to a basketball game.
Even I, skating nut that I am, have scant interest in seeing some guy do a triple Axel. But taking off for a triple Axel right on the swell of the glorious music, then landing perfectly in that split-second pregnant pause just before the climatic downbeat -- yeah, that's worth the price of admission!