Is there a particular reason why space flight-sims died out by the turn of this century? I mean, TIE Fighter was huge.
This is guesswork, *but* I think it has to do with the fact that the genre was only ever big on PC, and at some point in the late nineties, the PC platform became dominated by cookie-cutter first person shooters (a paradigm that remains to this day), RTS's and, by the middle of the decade, MMOs.
Stalwarts of the market, like space flight sims and even point n' click adventure games just fell by the wayside. Those two things happened to be my favourite game genres, so it's little wonder that I fell out of touch with gaming for most of the early 2000s where I played bugger all apart from Morrowind, Freelancer (the last great space sim imho) and GTA, along with a stockpile of Lucasarts adventures.
EDIT:
Hmmm, did a bit of googling and
this forum post seems to agree with me while actually providing some convincing reasoning.