In a way both of you guys are right.
Bodybuilding was never "mainstream" popular, but it did have a fan that was much larger and more passionate than it is today.
I used to go to the Night of Champions when it was held at the Beacon Theatre (3000+ seats) and guys like Robbie Robinson and Danny Padilla were competing. The place was always packed. Today, I don't see the Beacon selling out for that event.
It is true that Joe Weider's empire is in decline, but that doesn't mean bodybuilding is any less popular than it was 20 years ago.
As Richard pointed out, bodybuilding and weight training are more popular than ever. Almost every city and town in the US has a gym. Millions upon millions of people have gym memberships. I would be willing to bet that the total number of bodybuilding contestants is far higher than it was in the 80's. There are also far more contests and federations.
The idea that the likes of Lee Haney or Danny Padilla attained ANY level of fame amongst the general public is simply laughable. Even many weight trainers never heard of those guys. With the growth of the internet, I would be willing to bet that far more people have heard of Ronnie Coleman and Jay Cutler.
If anything, bodybuilding has become
too popular. There are way too many steroid clowns in the gyms. There are way too many armchair biochemists giving out irresponsible steroid advice. There are way too many gurus trying to promote their pseudoscientific training doctrines. There are way too many supplement companies pushing worthless and overhyped products. There are way too many equipment companies producing useless exercise machines. There are way too many powder puff gyms staffed with personal trainers who can't bench their own bodyweight. There are way too many "bodybuilding" magazines which cater to f
aggots and clueless gym goers. Above all, there are way too many lazy little shits who use "overtraining" as an excuse not to train hard.
Now, I'm sure Dan-O will respond with something witty like "Lee Haney had his own brand of ice cream," etc.