Which is one of the problems really. Gamers at large have moved on from that era.
The youngest person who goes to my local is 29. Most of the people there are married with kids. Most of us, like myself, have been playing fighters that way since we were kids with console versions of Street Fighter or Mortal Kombat. That's the way it's always been for us.
For the new players to the genre that's a huge culture shock. They're used to matchmade games, queues and ranking systems. While some fighters do have those, they're not the main method of play yet. Even in titles like Street Fighter many players usually go through lobbies to find opponents, and having both a separate ranked queue and casual queue only serves to divide the matchmaking pool. It leaves the genre in a strange place, where they're attempting to make the games easier to get into for new players, but at the same time not drive away their existing player bases. The result is the player base is split across multiple modes of play rather than having a singular point of entry into a match.
I agree that netcode issues are a big part of why this is. Particularly in the early days of online play it was janky as hell. It's usually better now, though still not perfect - I actually have a Street Fighter 5 replay saved where I had Ken Shoryuken his way out of a Chun Li Super when I was 21 hits into the combo. But we've made some pretty big steps towards solving that problem, internet connections are faster and more stable than ever and GGPO Netcode usually gives solid and reliable performance. Sooner or later fighting games are going to have to fully embrace online play in a format to suit modern audiences, I do hope that doesn't spell the death of more local scenes, but online play is the only way to facilitate a global audience for a game.
I would love to see fighting games being able to capture global audiences in the way that LoL has. Or Fortnight. Or World of Warcraft. They can't do that if the genre still has one foot in the past. They need to be able to engage and retain new players in addition to the older school player base and I don't think that is going to happen without adopting the systems that other genres use.