There are a number of reasons attendance is falling, and the root cause is not just because of the team's performance. This question has been discussed on this board previously, too. Yes, the program's struggles contribute, but it's more than that. Here are some other factors-
The "aging out" of season ticket holders
The increase in ticket prices over the years
Pat Summitt is not the coach
The weaker home schedule (in some seasons)
The changes in gameday experience
The overall availability of games online in HD (ESPN3/SEC Network)
Now, yes, performance is also a big factor; if they were undefeated I'm sure it'd be higher. But let's not just say "the team sucks and no one wants to see them anymore!" That's an incomplete assessment at best. And no, 8800 in attendance isn't typical of the Lady Vols program, and I don't mean to say "yay the attendance is falling!" It's just ... jeez, people. If you're going to wave knives around, at least sharpen them properly.