I believe the two are related somewhat. Once you become more selective, more people will become interested because suddenly it's hard to get into and membership actually means something.
Bro Jones, nail on the head. This is what it really boils down to at the end of the day. If the business model is let virtually anyone join, short of felons, it becomes as someone said before, the Walmart of fraternities. Even when you swing the door wide open as it is now with lower dues (surely they'll join for virtually free!), t-shirts and shorts (see, we're a casual, every man's group), no Masonic education (Let's get in and get out), fear of talking esoteric topics (we're not voodoo or witchcraft!) etc, the numbers are still dropping. It's time a for change. It's really Einstein's definition of insanity with the way things have been going the last 40-50 years. If you raise the dues, it's gotta have some quality though No more Little Caesars pizza (no offense LCs) for dinner on paper plates or last minute ham sandwiches. It's no more wood paneling walls and shag carpet lodge rooms. Old buildings are fine, but good old. 1800s old, not 1979 old. If new, make them new. When young guys drive by there and see junk, they equate the entire fraternity as junk and think, 'why would I want to joint that?" If those lodges can't keep their doors open, the 'business model' is failing and they should maybe close.