While part of this of course comes down to Disney being very budget oriented (overly so in many cases), I also feel this is something that has been noted across the entire theme park industry.
Back in the day, shows and entertainment at parks used to be one of their main draws. Like Astroworld for example when it opened was more shows than it was rides. It was just something people really loved and it was a key part of the theme park experience.
However, as rides became more complex and audiences became more hungry for them, the shows began to get less and less attention. That's a trend that hasn't ever really stopped once it got started. There are empty, unused theaters sitting in dozens and dozens of theme parks across the country at the moment. Even parks that still do have some live entertainment such as Universal and Disney have unused venues. It's just a reflection of the changing attitudes of park guests, and the changing attitudes of park management who doesn't see value in it if the guests don't.
It's sad, but it's also not something I see changing any time soon, if ever.
This is true to a point, but also, labor is more expensive than it once was and parks are unwilling to pay.
It feels difficult to say with a straight face that most parks
are actually trying to bring in great entertainment and shows for their guests; instead, it feels like they've simply thrown up their hands and decided that "guests don't really want shows" and then brought that self-fulfilling prophecy to reality.
The truth is that if you ask guests if they'd prefer a show or a roller coaster, they're going to say a roller coaster. But a lot of guests don't actually know what they want, and you want to know a secret? After a long day at a theme park, people want a chance to sit down and relax in some air conditioning once in a while. You can run around a park and stand in line all day when you're 20, but if you're going as a family, then the parents and grandma are going to want to sit down sooner or later. Going to a theme park can be an underratedly exhausting experience, especially for those who don't go often or don't quite understand what they're in for. There's very little opportunity to sit in most parks, especially few places to sit in some air conditioning, especially few places where you can just sit inside with AC without being pressured to buy something and actually relax, or at least sit in the shade and out of the sun for a while. A show gives them that while allowing them to still feel like they're doing something productive with their day.
Shows also provide a positive function for other attractions by taking large number of guests out of lines for a short period and making those attraction lines shorter in the process. It also provides the value of giving people something to do without having to wait in a long line. Parks
need shows. They provide critical balance in a way few other things do.
Unfortunately, people will never say they want shows over sexier additions and park operators see entertainment cuts as an easy way to save money. It's a more complicated situation beyond saying that people just aren't up for watching shows anymore.