I think racing is just
I think racing is just getting more expensive, and I'd guess one of the chief reasons is the cost of insurance and coverage. I do more triathlons than straight runs, but with a tri you're gotta have lifeguards, buoys, a park area for transitions, bike racks, road closure for the bike and often the run route, which means police, plus the race director has got to cover his rear in case somone goes down so there is plenty of insurance protection. Even for a 5k, you need to close the park/road/trail, get medics, buy t-shirts/medals, set up timing chips, etc. I've got to imagine that putting together a race can't be a cheap thing, not if you want to be treated well as an athlete.
I'm thrilled when an event I want to do is only $30, and the only events like that here in Hawaii have been the Open Water North Shore Swim Series. Granted, everything is more expensive here.