I agree with what Dave says.
Of us who do fly high end kites, I think I would be right in saying that over the last 10/15 years the ratio is much more towards trick flying. I think that most of us fly alone, and trick flying is more interesting as a solitary pastime compared to drawing boring circles. It's also a more interesting activity with partners but that is besides the point.
Anyway, compared to precision / team, trick flying demands a more specific wind range for it to be enjoyable. So going to a competition is more of a gamble. Where precision people can do justice to their ballet routine in anywhere from 3mph to 25mph, I for one can only do justice to trick flying in 3mph to 10mph. I just don't enjoy it above that. Which means, even if the fickle forecast says "perfect wind" on the morning of a competition, I won't travel if it is further than 2 hours drive away.
So umm yes my theory is that less people fly competitions because more people fly tricks.
VF works because you don't have to travel anywhere, you can wait for that rare good wind day (and you get a chance of winning something). OK I'd prefer to win national standings points more than a kite (personally), but not if it is a gamble.
Besides, trick flying is a bit of a "soul" sport... although we all like a get together and a fly and see whether Piero can beat Chris and who can do comete/taz cascade, but on the whole I don't think many people are bothered at the end of the day.