Thanks for your detailed answer! It gives me (and, no doubt, others) some good insights. I believe the differences in Europe you mention help chess grow and thrive there. It's unfortunate that the U.S. does not have a similar culture at the moment.
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Most of what Steve posted of how the European chess setting works is true for most of the US too. Most chess is played at the local level, ran by volunteers, on shoestring budgets, in free or cheap sites.
Part of the issue the US has against it, is size and lack of decent public transportation in most areas. You have pockets of chess and if you want to play rated games, you are stuck playing mostly local players or are required to incur travel expenses to play in even one-day events.
Sponsorships still happen, but are less common too.
I think the real question is what are the reasons to pay $1000's to play a few games in a fancy hotel? I think there is only 1 answer. To win big prizes of course. There will evolve only 1 type of player who enters these events, the hustler/sandbagger. Families, the young and old players will disappear. As a few have pointed out here, it is a new generation with a different agenda for the hobby players. Learn to beat the system and win big $ . Throw sportsmanship and spirit out the door, it's a cut throat world out there.