i don't think people stopped going because of the economy because its being dwindling in popularity for about 5 years.
the owners might have felt the recent economic downturn was the straw that broke the camels back though.
in my opinion many "larger" quilt shows are going thru growing pains trying to find a happy medium between traditional and contemporary styles and works.
the paducah show suffered terribly when they gave the "best in show" to someone who did all the work by machine. it took them many years to come up with all the categories that, for now, seem to make everyone happy.
the lancaster show on the other hand has not moved with the times, it is still primarily a handquilters quilt show. they allow machine work to enter but if you want a ribbon don't hold your breath.
the problem with staying in this vain is slowly you will lose your client based because all the new people entering the art mainly work with machines.
but like i said this is just my view of the different types of shows.