I think the extent to which a lot of people here are arguing that artistry is a fairly minor or even incidental part of figure skating is just further evidence of how much IJS has changed the sport and the way hardcore fans see it.
Meanwhile, when you look at the bigger picture in North America, ratings and show attendance continue to stay flat or struggle .... And which discipline seemed to capture the public interest the most during the Olympics? Ice dance. The discipline that prioritizes artistry, beauty, and presentation the most. (Even though it also has a strong technical component.)
There's not a general-interest viewer out there who would really want to sit through the splatfest that was the men's FS at Worlds. Yes people enjoy athleticism, but they also want to be entertained as they watch, or they'll do something else. As
@manhn noted, when the level of play or scoring drops in other sports, yes, you hear about it and yes, adjustments and rules changes are often made.
Figure skating is different from basically any other sport out there ... that's why the majority of fans love it. And if you degrade the performance quality of it enough, yes it will affect viewership IMO.
As to the argument that figure skating only has a small fraction of exceptional artists, I find that to be a somewhat meaningless statement. Most sports have only a limited number of people who are exceptional in any particular area at any given time. Even now, we have only a limited number of men who are truly exceptional in the area of landing quads. Does it therefore follow that landing quads should be downgraded in the overall scoring because only a few are really good at it??
Figure skating is its own entity. It has always been the most unusual of sports, always different. To state that "figure skating is an athletic sport, with an element of artistry to it" is interesting, in that figure skating once, in fact, had little athleticism to it. When it began, it was mostly about edgework and blade control, with only a relatively small dose of athleticism in the form of simple jumps and spins and lifts, and just a bit of rudimentary artistry in the form of basic choreography to music. So to suggest that it has somehow always been a primarily athletic sport is simply incorrect. Over time, its pure athleticism has grown ... so has its pure artistry. Both the athletic side of the sport and the artistic side are now arguably further developed, down through the entire ranks of international competitors, than they perhaps have ever been. Meanwhile, pure edgework quality, once the basis of the sport, is now of lower significance. I guess the larger point being that figure skating is a malleable entity in many ways, and it is constantly in the power of the governing body and the public to reshape the sport. To suggest that its true essence is, or should be, primarily athleticism is not some kind of absolute truth but simply one of several possible perspectives. It happens to be a perspective I don't personally agree with.