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I think the football factor is a significant one. Football simply occupies so much more of the national sporting interest than it did years ago.Most of those cities have two decent level football teams. Most are also traditional industrial working class places. Most of my friends from the North West and North East had little rugby at school. Sadly it's still seen as a posh boys sport. Football is king. Those that have attended games feel sneered at because they are not wearing red chinos and say "chin, chin". Sometimes it seems rugby wants to grow the game but only with the "right sort" of fans.
The big cities have diverse multicultural populations now. Grow interest with the Indian, Pakistan, communities etc.
I've never visited a club in Manchester or Liverpool, so couldn't comment specifically on the class thing, but unless snobbery has increased over the years, it doesn't explain the decline in northern representation in the upper leagues in isolation.