There are a lot of contributing factors as to why MLB is losing popularity, but they aren't doing anything to help the issue. Like I said, scheduling playoff games in the day on weekdays is really dumb. Find a better network deal than FS1, MLB Network and TBS.
As for the reasons why, I can probably list a ton. Like you guys mentioned, kids aren't playing it that much anymore. Baseball isn't a sport that is being played in big cities. Baesball is very middle of America, no one is playing baseball in the middle of New York City or Chicago. Also a lot goes into baseball, equipment, field size, amount of people you need to play a game, etc. Much easier to play a game of pick up hoops than a game of pick up baseball.
MLB just has a branding problem. Mike Trout is the best MLB palyer and the average person probably can't recognize him. Most anyone can recognize Tom Brady or LeBron James. It also doesn't help that most MLB players can't speak English. Ichiro was the best player in the world at one time, in our own city, and I don't think he ever attempted to learn English. I'm not saying that they should, but our country won't gravitate towards them as players when we speak different languages. And to be honest, MLB players are just boring. I don't like David Stern, but he was a branding genius, he made the game about the individual stars and it was great for the NBA.
I always felt that baseball is only interesting if your local team is doing great. I can watch the Seahawks when they suck, because football is an entertaining sport to watch. Same with the Sonics and the NBA, even if your team sucks, you can still watch your team put the ball into the hoop around 40 times a game. In baseball, you fail more than you succeed. Just think about it, if you are a .300 hitter you are considered a great player, that means that you will still fail 7 out of 10 times. You can go to a baseball game and watch your team only get 4 hits a game, that's awful. You can go watch the best baseball player in person, and there is a good chance you only see him reach base once. Go to an NBA game and you will see the best players score 20 or more points each game.
I think when people watch a sport, they want to see the stars, and success. The ball is in Tom Brady's hand every offensive snap. In an NBA game, LeBron James will pretty much touch the ball each time down the court. In MLB, you get to see the best player come to the plate as many times as the worst guy come to the plate. Then go back to success, a MLB team will hit about .250. So you will watch them fail 3 out of 4 times on offense. In the NBA you make a basket nearly 50%, that is a 50% success rate. You see a completion far more than an incompeltion in the NFL. I'm not saying baseball is flawed, but I'm not sure how much more they can do to make the game more intriguing.