Because of this thread, when I left my job today I went straight over to one of my area's two game stores. I live in Colonie, NY, near Albany, so while the area's sort of urban, it is far from big city.
When I went in, I bought two books, but then I watched. And I saw a game store, on a Thursday night in November, with at least 35 people between two floors. They were doing a healthy amount of business - I watched a couple of books get sold, many many comics, a good number of Pokemon cards, and a group of players started a Magic: The Gathering draft.
In the back of the store, a 4E game was starting as the players filtered in. A few different folks were weighing in on the Dark Eldar faction in 40K. Upstairs folks were playing in a Pokemon tournament and the aforementioned MTG draft, while others perused comics. The kids playing Pokemon were just that - kids. They were talking about their day in a local high school, and one of them picked up a box of Munchkin when she was downstairs.
I know the owner of the store, and he has enough income from his operations to constantly expand, try new products, and employ quite a few different employees. He does have the benefit of also running Eden Studios (All Flesh Must Be Eaten), but that's far from his store's main source of income.
As I left, a dad came in and was showing his young son a role-playing board game.
Dying hobby? We'll have to see.