My friend stunt,
You're assessment here is completely spot on. Bodybuilding is about as dead as the internet is dead.
I think I've written on other threads, or if I haven't I will write it here, that overall competitive bodybuilding has never been bigger than it is today. There are more total contests and competitors all over the world than ever before. Anybody that thinks otherwise is out of touch with modern bodybuilding reality.
What has happened is that bodybuilding has changed. Today there are multiple categories, not just the open men's. You have the 212 class, men's physique, men's classic physique, and then there are all the women's categories. Say what you will, anybody that competes in any of these categories is a "bodybuilder."
Some will say the Mr Olympia contest is dead. What it may be in this current era, because Phil Heath is so genetically gifted, is that no one can come razor close to matching him. Hence the result is a not very anticipated or exciting Mr Olympia contest.