I think it is a combination of 1 & 2.
Football has to be considered as part of the entertainment industry. There is a limit to how much money and time people have and there are lots of competition for that time and money. I would question whether the entertainment value is enough to earn that time and money. I'm sure that the crowds would improve if something can be done about the entertainment, but to do that you would need to do something about the likes of St. Johnstone's antics .... Maybe the ref could put some of that foam into a custard pie for players timewasting :-)
Personally, I have to leave home (near Preston) at 9 am and don't get back till after 10pm to make a home match and it is a £100 day trip, which is why I can only make about 5 games a year and will be one of those who swells the Hampden (and the Livingston) support. Sorry if that is not good enough for some, but it is all that I am capable of.