It's interesting to see parallels in other hobbies from the marketing side of things. I think the spike in growth is definitely down, but now that companies see that huge profits can be made by selling limited edition discs, custom fun stamps, crazy colors, and tour series discs.
Thinking back to the '08-'12 era like fisty mentioned, swirly plastic was a rarity and really sought after, but now it's just a type of plastic. Any kind of halo effect would have been a gem, but now it's just out there. Even pearly plastic isn't considered as unique or sought after as it was in 2010.
I played Magic the Gathering for a long time and haven't played for 4-5 years but still loosely follow the market. With the introduction of collector booster in 2020– that are exclusively alternate arts, rares/mythic rares, full art cards, chances at some crazy extended art foil whatever card– the prices of foil cards and rares dropped like crazy. The player base has definitely declined because people are getting bored of all the flashy things and product fatigue despite Hasbro sharing record sales because of the huge prices of these fancy collector boosters. The boom of the 2020ish playerbase in MtG has gone down, but the product is still pushing pushing pushing.
I want to clarify that I'm not upset about all the tour series, collaboration, and fundraiser discs. It's incredible to have seen the huge shift in the game making it viable for pros to tour and the support for the game and for the players is incredible. However, I see a lot of pushing product that's flashy (Ledgestone, a lot of DD discs in general, OTB/Gyropolooza, etc) and the market is rejecting it, which I think is why we're seeing these big layoffs. The companies put so much money into product and making quick sells that they're hurting when that product doesn't sell.
I'm not business savvy, so of the last paragraph could be way off base, but it's been really interesting to watch these two markets do similar things around the same time. As a vet in the game (and that's relative, I know some of y'all have been playing for way longer than I have) I definitely have some grumpy old man nostalgia for when the game was a more relatively niche sport.
As an aside, I was watching some old CCDG coverage of the 2013 FPO Master's cup, and wow has the game evolved. Val Jenkins, Paige, Catrina, and Hokom, and nobody was in single digits over par. MPO scores were similarly a lot lower than they are now at comparable tournaments. Because of the enormous community support, the field has gotten better ten-fold, just to highlight the good that's come out of the rising popularity of the game.