I've heard quite the opposite in French mags, that the market is finally doing better than ever after more than a decade of decline. I heard Starboard had a very good year last year, and expect to do even better next year. I heard than Neil Pryde have sold more sails in 2006 than in any previous year in the last 10 years.
Exocet have increased their sales number dramatically over the last 5 years, to the point of lauching in 2007 a new brand with Kona, aimed at a wider, more family oriented market.
As Bill said please indicate your sources for this so callled decline, because that is not what I have heard, or witnessed, at all.
Plus here in France we had an incredibly windy year in 2007, and a lot of "vets" who switched to kiting to exploit light wind days, reverted back to windsurfing with the incredible conditions we've had all year.