No we will never get back to the kind of money we were making 5 years ago. I would describe it as being on the "Gravy train with biscuit wheels" That said, for the companies who have been around for a while most have learned to adapt and find ways to continue to grow and profit. Just not as much, or at the same rate they use to!

I would blame the downfall on a number of factors. We are in a glamor type business, just like any other media business ( magazines, movies, TV) i would put owning sports teams, nightclubs in there as well. It tends to draws in people with no practical business experience or even basic knowledge of the business. Many get into it for the "Prestige Factor". I think we are seeing these types slowly fade away. What we are left with will be the ones who are in it for the right reasons. Create a quality product, give there members what they want and make some money doing it!
That means keeping a close tab on all you expensive and exclusive content. Only giving away a small bit at a time, just enough to entice the surfer to want to see more and pay for it. It means not getting weak when the economy and sales take a bit of a dip. And your solution is to flood even more of your content into the market via 1000's of FHG and tubes hoping that will solve the problem. ( Smart and profitable producers never do this!)

Porn will always sell, and there is still great potential in this business, but it's maturing and only the companies and webmasters that have sound fundamentals and an ability to adapt and stay the course will be able to make a decent living at it.