Wales is a small microcosm of Rugby union as a whole.
Losing global market share, run by relics, and most clubs not run by private owners willing to lose a fortune are on the bones.
I recently laid it out bare to a development officer, non Welsh PGCE students, in increasingly over subscribed PE teacher courses in uni are gaining positions in welsh city schools (Newport, Cardiff, Swansea). These PE teachers aren't rugby people, they're mostly football, and between that, and changing cultures oflver the last 15 years in major welsh cities, football absolutely dominates.
I can give you 7 high schools in and around Cardiff that barely run rugby teams, or has rugby on the curriculum.
In a small country, being culturally changed radically by their government, rugby is a old fashioned custom that is dying out.