I've been reading Scott Hamilton's Landing It (1999) and he talks about figures, how he had to work so hard to get to first place (eventually) which helped him win an Olympic gold medal, and how much learning figures contributed to quality of skating.
Like many from his era, there is a sense of loss with no more figures in competitions. Yet, as the videos (thank you Sadya for posting) show, that another "eventually" figure skating evolved into a more expressive art form (Thank you Janet Lynn!). The public also had input, as watching a free program with expression gave much more of a connection to the skaters and what was happening on the ice, than did figures.
There have been discussions here about, should school figures return to competitive skating? I'm not trying to rehash that and don't bemoan the changes that occurred when I was not a fan.
Scott, in his book, talks about the then (1990's) jumping craze and how a slight, lighter body could jump better than perhaps a more muscular type that could do great figures. A slight, light body may not provide the weight needed balance and steadiness for figures.
It's interesting the title of "Figure Skating" continues to this day.