The basic problem is demographics; no younger kids are entering the hobby. $20+ each is a bit much to buy several kits. An hour at McDonald's used to buy you a kit, but not today. Kits were sold everywhere back in the '1970s.
Also, the auto companies helped subsidize the development of kits in the beginning. That's gone.
Who knows how the Revell situation will turn out. Maybe better, or not.