I used to. I sold off all my figures and scenery a couple of years ago - had a Genestealer army. A lot of them were painted to a pretty decent standard, and most of them were converted to some degree (different weapons, backpacks or ammo pouches added, standards, etc). I probably could have got £100-150 for the lot on Ebay, but I thought I'd rather sell them to someone who was going to get some real enjoyment out of them. In the end they went for £50 to a lad about 10-11, who got the deal of his life. :-)
They dumbed down while I was still playing. Me and my mates kept going using the old-style rules, but I lost enthusiasm for it when I went to uni and started playing guitar - the creativity that went into converting and painting figures went into playing guitar instead. ;-) Plus the prices of figures went up hugely while the quality of game (and back-story) went down.
GW are currently having a bit of a cash crisis, according to reports on some internet news place recently. Apparently someone's just realised that they're pricing themselves out of the kiddy market, and they totally destroyed their adult fanbase 10-15 years ago, and their kiddy market players all quit when they reach 16-18 bcos it's too cartoony, so their business is stagnating in a big way. My only comment when I read that story was, "Hahahahahaaa!"
Yes Clinton, they also did Blood Bowl. Again, that's another game they trashed by messing with the rules. Originally it was simple, fun and a reasonable balance of skill and luck. "Beat the crap out of the other team and get the ball to the end zone" worked well. The whole point of it was that it was rules-free. And then they introduced the American-football-style rules. Now maybe if you're from the US then this makes sense, but for anyone else this was a pointless exercise, because no-one outside the US cares for American football, and trying to impose rules on something like that breaks the suspension-of-disbelief.
I think there still are plenty of historical wargamers (and wargames) around. Our singing teacher's husband is seriously into it, so obviously there are still some hardcore enthusiasts around. Thing is, computer games are great but they don't have the tactile quality of miniature figures.