Ramoth hit some good points.
Ten years ago, Ultima Online was just coming out and was leading the way to a new era of gaming-MMO style. However, the Internet was still small and just not that popular (as it is now), and not as cheap or fast either (I still remember when it was like 100 Hour limit). So, back then, that, along with the knowledge that social interaction online was severly limited, meant little distraction from playing in the arcades.
However, that has all changed thanks to the Internet. Are arcades gone? No, they are still around. However, they are largely forgotten by older gamers who neither have the time, nor the friends, nor the will (because of what they can do at home) to go to them. Younger players (for the most part) just don't care about them.
Finally, as a case-in-point, one need not even have MMO with computers or even the Internet. A nice LAN party works wonders and has a host of friends all together in the same room. Just like the arcades...
Oh yes, as part of nostagalia, I DO remember playing in the arcades. A friend of mine had a birthday party there. Got fifty extra coins too. It was fun, we played Simpsons. Of course, it also reminds me of one of my biggest let downs, namely when I wanted to have one, since it was so close to the holidays, everyone was gone (leading to it being cancelled

). However, playing Simpsons rocked and I try to remember those more upbeat memories.
Jam it back in, in the dark.