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Simply read Robert Pruter's "Chicago Soul" in which the decline of Chicago as a music centre is documented in great detail. One of the absolutely essential books for anyone seriously into soul.
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Does anyone here know who Alexander Graham Kowalski was? He was the first telephone Pole. Abit of bad American humor
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All the reasons cited above sound good to me. Add to them the change in musical style to a funk-disco oriented electronic approach relegating instruments in terms of importance. The decline of gospel-
During the 70's, Detroit, Chicago, Memphis (Stax, Goldwax, AGP, etc.) all declined as producers of great soul music.
LA & NY seemed to hold there own whereas Philly was on the upturn.
.......... why was this ...
Motown quit Detroit but lots of the creative people (producers, arrangers, singers, musicians) remained in the city.
Chicago (after Brunswick's payola problems) went into major decline & guys moved out to other cities (Atlanta, etc.). Chess had already declined.
Memphis had a burst of creativity from Hi, but Stax went under with financial woes & Goldwax just faded away.
In an interview Chicago based Floyd Smith gave in 71, he said they always worked 'formally' in Chicago soul circles, no improv in the studio as Stax & Motown did. Guess this didn't help their creative juices at all & guys again moved away (didn't Floyd Smith relocate to Nashville or somewhere similar ??)
Views on the decline in soul terms of these cities musical output is much welcomed !!