I don't think it's disappearing at any greater rate than it ever was. Some examples:
Masahiko Kimura entered various professional grappling tournaments in the 1940's and 1950's, much to the horror of Judo purists, who felt he was offending the noble art of Judo.
Chotoku Kyan, Okinawan Karate teacher, who by many accounts would brawl with anyone who looked at him cross-eyed and brought his students to dens of ill repute on a frequent basis.
Certain yoga moves to certain people are about opening chakras and finding a higher consciousness. The same moves are done in Pilates, where the only concern is strengthening the body. Now who has the right persepective? No one really. The individual will see what they want to see.
There will always be people in Martial Arts who see them as nothing more than a way to beat people up. There are other people who will attach a greater to meaning to what they are doing. You can't tell people what to think, they will make up their own minds on it eventually.
"Let your food be your medicine, and your medicine be your food"