Whatever the perception now, I don't recall RPG's being the cool, in thing, supper popular back in the day either. Most people still didn't know what we were talking about. Most older people were too busy or thought it was for kids so didn't play it. Most younger people rather play sports, go to the local fishing or swimming hole or whatever.
Before the computer craze it was the TV. Don't blame it on the kids. Who wants the kids safe in the house instead of out roaming the streets. Who wants the kids entertained without having to participate. Who wants the kids quiet instead of rambunctious.
nowadays the kids are all staring into their iphones or their computers. I suspect they have no clue how to use their imaginations
How much imagination is there in a game of shoots and ladders, go fish (using your memory, but not imagination), baseball or tag.
Lego's, dolls, and hot wheels cars may use imagination but plenty card and board games had little imagination.
Today, the grandkids often run around the yard pretending they are fighting pokemon or whatever the latest craze is - often an old one repeated like when the ninja turtles movie came out.
And everyone is different. Some people just naturally have more imagination than others.
I know one boy who only wants the best equipment in the combat game and is always annoyed with his sister because she is using too much time - in his opinion - shopping for gear that she thinks looks nice on her avatar or is wanting to change outfits just because - "I want to wear my red armor now with the helmet that lets my hair whip around when I fight"
Some are very into computer games - but minecraft is VERY popular and a game where one uses their imagination extensively. I've gotten some kids into Sims and Zoo Tycoon. I know back a few years when the cars movies were popular, there was a Cars computer game that had racing and a few other types/modes of play. There was one where you drove all over collecting something in town and around the countryside - a large setting. I often would notice the kids driving around just for the heck of it - let's see what the town looks like from up on that hill, let's run the car off the road on purpose just to watch it tumble down the mountain side, I'm going to find every barrel in town and push it into the street and then run into it.
Some are into playing barbies or play school or playing house or playing dress up changing outfits 1000 times until every item of clothing everyone in the whole house owns is thrown about the room. Some are into making up their own songs or creating dance routines for popular songs. Some like drawing and writing stories. Some are more into sports and physical activities.
The older kids are into texting and other things on the phone a lot but often using their imagination as they talk about things like what type of boyfriend they want, what they would like to do with their hair or makeup, that cloths thing again - talking about what they are going to wear or what cloths they would like to buy, what kind of job they want this summer or when they grow up, how many kids will they have in the future, what pets they want and what will they name them and what they will train them to do, what their future house and cars will be like, the best way to scare, tease, or prank their siblings, how to create a youtube video that will get a million hits... kind of make believe role playing via text - much more open ended and imaginative than those old time text based RPGs I bet some of you played - "Your in a room with a treasure chest, exits are north and south."
Personally I don't think a D&D dungeon crawl was all that imaginative.