Let me start by saying I used to like freestyle and greco more than folkstyle. I come from one of the states that is all we wrestled until middle school (that was when we start folkstyle).
Having said that, I find freestyle very frustrating with the rules as they are today. It is very hard to coach younger kids and get them fired up about it because it is too easy for kids to lose by trying offensive takedowns. If a kids doesn't finish his/her shots quickly and in great form the defensive wrestler can score very easy. This discourages our younger kids from staying with freestyle. The argument is that freestyle causes them to learn how to finish better and faster...true. However, when you are talking about younger kids they don't see that...they see baseball.
Secondly, we are our own worst enemy. Too many folks see wrestling as an individual sport when it is actually a great team sport. Look at the participation we have for the middle school and elementary school duals. Cost wise you get the biggest bang for your buck at these tournies. This builds experience and comraderie. Same is true for the freestyle/greco dual series. I think if we offered some kind of dual meets we could grow interest and keep if even during freestyle/greco.
Lastly, folkstyle pays more than freestyle or greco. The most kids can realistic hope to get out of wrestling is some money for college. Colleges wrestle folkstyle and there is currently a huge gap between folkstyle and freestyle. I see Will's point but USAW needs to do things like the NHSCA does then. They need to get the colleges to set up booths and do the extra stuff like the NHSCA tourney does. That would help the kids. Have a series of "show case" tournaments that feature different colleges at these tournaments. They do this in soccer all the time.