I sometimes wonder if there's some "it was better in the old days" going on. In SF, it really WAS better in the old days, the combination of DV monopoly plus other local factors has led to far less busy clubs, which I think is directly related to the talent. That said, this comparison is during the peak of SF SCs, around 2000. If I compare today versus, say, 2012, I don't know if there's that much of a difference. Maybe. I dunno.
To the extent that it's not just nostalgia but really true that strippers aren't as pretty, I do think both camming and SA have to have taken some toll. In the case of SA, I think the effect is indirect -- my sense is that the majority of sugarbabies use SA as a side hustle (most babies are making $2000ish/month or less? On the reddit group, the SBs say that if you're making more than $3000/month, you're in the top 10%), whereas stripping is a job in itself. Or, in other words, strippers aren't quitting their jobs to become sugarbabies; instead, as I've run into over and over, they're advertising on SA to supplement their income. Meanwhile, the SBs like Rando's current girl never would have considered stripping in the first place. Or, in other words, as a side hustle, SA isn't competing for the same girls as SCs directly. But SA is competing for the exact same customers. As more customers choose becoming SDs or camming over SCs, SC business goes down, and fewer potential strippers bother.
The current fascination with fat chicks with fat asses has to be having some impact, too