I THINK there are a lot of myths around O scale. First the availability of O scale is not a problem. There is a lot of two rail, both new and used available. MTH was a very minor player in my opinion in 2 rail. Atlas O was bigger, Sunset 3rd Rail, is a big one. There are various small ones - lots and lots of them. The thing about 2 rail is that most mfg build to NMRA standards, therefore you can mix and match equipment from many mfg. When you get into 2 rail and look around, you find a lot of availabile models. They are just not in the same places as the 3 rail stuff usually.
Track work does have to be better, but not so much so as to be difficult. Remember, track work in HO is even more sensitive and many more guys do it than do O 2R or O 3R,
While space can be an issue, you can model a lesser size scenario.
Cost is not an issue. I read an editorial once that Modelers buy enough stuff to fill up the available space. So if a person buys HO, or N, he buys much more than O so ends up spending as what is available in hobby budget.
Wiring with DC is much simpler that wiring with AC. Everything is polarity based. You don't need E-units or any other kind of device for reversing Simple wire from one rail to one side of the motor, and from the other rail to the other motor pole. To change direction, simply reverse polarity on the rails. Reversing loops do require a little more work, such as putting a DPDT switch or a modern electronic device to change polarity in the reversing section.
I think a big issue is that model trains are not as interesting in general. My operating group is a round robin group with on 3RS layout, my 2 Rail Layout and a bunch of HO layouts. Generally all the attendees are getting older at all of them, not just the O Scale ones. WE have a few younger guys, but very few. So it is not just interest in 2 Rail O scale, it is interest in all model trains that is not as strong.
