Pool has seen a revival of sorts in my area. For about four years we have only had one room, and the owners didn't care about pool players. They would rather have a casual crowd with a "movie and some pool" attitude. They never changed the cloth and no one liked their tables. We kept telling them to buy a diamond but they refused because pool players didn't spend money (why have a poolroom).
Fast forward to about 5 months ago. A new room opened with all Diamonds, a mix of bar boxes and 9 footers. The place has been booming. They have 3 tournaments a week and it usually has 25-35 people. Shannon Murphy and Robert Frost played in it last week. There are some decent sets being played and all is well in my world.
Professional pool seems to be doing well also. We are only 5 months into 2011 and we have already had the masters 10 ball, the ultimate 10 ball, us open 10 ball and one pocket, the DCC, the bar table championships, and multiple international tournaments.
I think pool is doing great from where I'm sitting. There may not be as many cues selling, but that is a result of poor confidence in the future. Even though many people are recovering and have jobs again, there is always a rebound time where people are scared to spend money. When you have more sellers than buyers, the market becomes saturated. Along with all the current cues, cue makers continue to make more; who is going to buy the new cues?
I agree with you that the custom cue market is down, but I believe pool as a whole is very much on the upswing.
-Brandon