Kung Fu == Bad Business?

[delineal]

Please see my post describing some aspects of the situation that the martial arts industry faces. In it I pose the following questions:

What are some business models outside of the martial arts world that have successfully overcome similar difficulties?

Is martial arts (in the sense of preserving actual effective hand-combat skills) ultimately doomed to the realm of academics if a business model cannot be found that better matches the daily needs of modern society?