"dont overfil" you do right to put your tin hat on.
I've been private flying for some 40 odd years and have to say I have not noticed a fall off in total recreational flying.
Far from it as the microlight world which I have and do enjoy as well as GA has matured into a vibrant scene of several thousand aircraft owners who do use their machines.
The options for those who wish to learn to fly and now very varied and several folk indulge in many different versions during their time.
What is needed is a tight control on bureaucracy. I have noticed several folk give up citing licence/medical confusion. Despite all efforts it seems the whole CAA/JAR/NPPL/EASA/LAPL (can I speak english etc) moving goalposts thing is a confusing last straw.