Kids age 6-12 may be playing less organized sports because...

It really depends on where you live. In our area making a HS sports or dance team is almost impossible for a student who has not been involved with the activity outside of school and almost always on a travel/competition team.
That said, I do not think sports are the be all and end all. Neither of mine played sports in HS (D was on Dance team- very competitive but not recognized as a sport), but now in their 20’s both are very active running and at the gym. Kids who do not participate in sports learn valuable teamwork and leadership skills in marching band, debate, putting on a drama production, scouting activities, etc.