I agree completely with you about the 80s and 90s part. But somehow recently, I feel that arcades are starting to make a resurgence, or have a chance to at least. Witness the popularity of Maximum Tune, and nice arcades popping up again, (1U and Sunway Pyramid). Also, just like the way Street Fighter 2 and Tekken boosted arcades back then, I feel that Street Fighter 4 can do the same again, as long as arcade operators bring them in.

Only saying this because when I was in Virtualand Bugis Junction last month, there was an 8 screen Street Fighter 4 cabinet, yet people still were queueing up for their turn. The awesome thing about this was the people playing were both pros and noobs. It didn't matter cos everyone wanted to try out the game. Awesome! Made me really wish for the same thing back home.
And yup Darkstalker, I agree with you about arcades. There's a thrill about playing a stranger and testing yourself in an arcade. For me its really fun whether you win or lose. (But of course I want to win la lol)