Might as well come out of the shadows for this.
Don't forget how this whole thing started sporadically as one massive thread. Once IGN gave us a forum, everybody was so excited to be a part of something new that there was a lot of drive to be a part of something special. It was the new thing at the time, and considering the era (end of the wrestling and internet booms) e-feds were hot. We were innovative and creative enough to draw the masses.
That isn't the case anymore. E-feds in general are down. Places like IWO and FWLnet.com don't exist anymore, and what does exist isn't nearly as popular. Peoples' attention has shifted since this started. Facebook, Myspace, and Youtube weren't around. The basic idea a of what a blog is was just taking shape. Seven years ago, when message boards (particularly IGN's) were booming, people finally had a channel to express themselves on the internet that didn't involve building a geocities website. There was a novelty to it that made it special. Now the idea of a community on the internet is huge, and very ego-centric. Why would you put in the time and effort to write a 5000 word match when you can film yourself sitting in front of your computer talking to your dog, and get instant feedback and attention?
A lot's changed since then. The average age of the active writers here is at least five years above what it was in the beginning. The activity in chat, on the boards, and message boards in general has gone down. There was a time when you couldn't go an hour without checking the board for something new. These days, it's common to see a day go by without a post. Even the popularity of wrestling has been relatively flat since the WCW Invasion debacle, in large part due to a lack of true competition. The quality of writing itself has gone up here, as Divefire mentioned. Why bother when you're hitting singles and everyone else is hitting home runs?
But the fed hasn't changed much since the beginning, and the fact that it hasn't adapted to the things that have changes is a large part of what's led it here. People came and went, show names and schedules have changed, and feeder leagues opened and closed. But by and large, the system that worked seven years ago hasn't been altered. That's not altogether bad, but it clearly doesn't contribute to any sort of growth or sustained success.
Advertising, moving, building yet another website is no solution. It may help in the short term, but the long term problems will continue to be there. Think about what you would do if you were to start a new e-fed today. Consider everything that the web is now: myspace, wikis, youtube, facebook, blogs, video, web 2.0 in general, etc. Utilize them and form a concept that can be a mold for a new and successful SWF. Take the ideas that have been mentioned like lowering word limits, booking newbies in some easy matches, providing some channels for instant gratification, etc. Retain the foundations of competitive match writing, wrestling knowledge, character building, a forum and an active community. Think outside the boards. If you want this to continue, then use the things that motivated you to participate in this project in the first place, and build something new with them.
I'd hate for this thing to go out with a whimper, so I'm happy to help in any capacity. If you're folding up in October, I have a lot of matches, promos and resources archived from the days when this all started that may come in handy. I don't have the time or skill to be active on a weekly basis, but if you're rebuilding the fed or restructuring in some way, I'll gladly lend a hand to that endeavor as well.