Sales were actually up(a little) in 2011. At least they have stopped going down and I think this has given hope to those that are in the business. There are some fundamental problems with the industry in general. It's discretionary, too many manufacturers, and the retail business model is badly flawed. In other words, nobody makes very much money in the business.
It's funny you mentioned your wife nogear. Women have been the growth factor in the industry for the past 5 or 6 years. My wife rides too, and she's pretty good. She goes pretty fast, loves to wheelie, and looks great in leather armor. And the best part.....she doesn't want to go riding very often. Ha!