As a good runner (and a girl), I played both basketball and soccer. If you're a runner-type, it's a no-brainer to play these sports over volleyball or softball where you mostly just stand around. I was so much faster than some of the other girls in my not-very-competitive league I'd sprint to the other end on a fast break and have time to miss the first shot and make the second. But I digress.
I am 40-something. When I was young, basketball was well-established and soccer was just getting started. I was on my high school's first ever soccer team . . . in seventh grade. At that age, I couldn't even make the JV basketball team. So basketball had a lot less competition from soccer back in the day.
Lack of cuteness wasn't really an issue. I would say the uniforms for soccer and basketball and volleyball were equally "cute" back then. Volleyball players didn't start dressing half naked until later. Basketball uniforms were looser, but so were soccer uniforms. They were basically the same. And softball uniforms were (and are) awful. Ironically, the WNBA may be hurting things. When I was playing basketball in the early 90s, my role models were the older girls in high school playing, who were popular and athletic. I'm not sure my teenage self would have wanted to be like the very uncute WNBA players.
Whatever the reason, I think it's unfortunate that girls' basketball is fading. Basketball is a great sport for people of all heights and ability levels. I remember playing in a game as a ~5th grader that ended 2-1. Yup, four quarters of girls scrapping to score one basket and one free throw. Probably like watching paint dry for an unconnected observer, but I'm sure my Mom was cheering enthusiastically throughout, and as a player, by golly, it was fun. Yes, height matters, but in smaller schools there just aren't that many tall kids and there's plenty of opportunity for average height kids. And again, it's a runner's game!