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I heard that for the first time in my lifetime Vinyl is outselling CDs...Granted the looming death of physical-digital media is probably as much the cause as is the resurgence of vinyl.
New RTR music does have a niche audiophile market (tech moan on youtube discussed it)...It is expensive as hell so most folks that don't want to play tapes of old music and don't roll their own cigarettes out of $100 bills while driving a Ferrari avoid it. I have plenty of good RTR decks and good old tape of music I like that I got cheap so I'm not inclined to spend more than I probably paid for my whole RTR collection on one new tape.
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