The problem with declining tournament participation is very complex and wide ranging. There are issues such as population and economic cycles, restrictions on waterways use, the wakeboarding boom and how that ruined many public waters, the corresponding move toward private lakes and the related visibility issues, and even the growth of ESPN from a small little cable outlet into a sports behemoth that buys the rights to the biggest sporting events in the world instead of our little ski tournaments.
It's not just one or even five things, its a bunch. I don't think USAWS has done anything particularly "wrong" per se to create the situations above, but I do believe they lack the urgency (or know how) to take decisive, broad action to reverse the current trend. They are probably completely overwhelmed and have no idea how to go about fixing it.
The use of blue ribbon panels is overblown in politics, but if they convened some sort of study committee or panel that included volunteers, industry members and marketing experts sitting side-by-side at least it would be a start. Just my two cents.