I don't understand how you can categorically say that type of skiing 'isn't fun'. I don't enjoy skiing big jumps. I wouldn't even consider saying that nobody does because I know they do. I know plenty of skiers who ski urban at the top level and enjoy doing it. I've been there, on big urban shoots, they enjoy what they are doing. Not all the time, exclusively. It fucking blows when you crash and get hurt but plenty of guys love it and have fun doing it.
You're 100% right about brand recognition, but it only works as long as a brand sees value. How many car brands have pulled out of F1 because they decided it wasn't worth the expenditure for example. There is no question that the big (ski) brands and big money are moving away from freeskiing competition as a source of brand recognition. By which I mean that ski brands are losing faith in freeskiing contests as a marketing exercise. I imagine because the skiing your average punter envisions himself doing and the skiing he see's in X-Games don't really equate in his mind, where as racing is much easier to relate to but I have no proof of that.
We haven't reached a critical situation yet, but I can think of at least 5 guys who've podiumed at X Games, Olympics or Dew tour recently who can't find a clothing/ski sponsor. At the same time, I can think of a lot of big ski brands who's highest paid freeski riders don't prioritize competitions. Your stance is that comp skiing pushes skiing the furthest, and in one direction, I agree with you. But in terms of profitability for both brands and skiers, that doesn't seem to be what the evidence suggests.
This thread isn't meant to be about this, so I'm going to leave it at that. It's a good discussion and a very important one for the industry. If you fancy it, maybe write something about it or start a thread and the discussion could be better placed there.