My feeling is that the current situation in NYC is caused by a long running crackdown on kmps (and is not limited to the 2016 kmp shutdown)
See this complaint filed 1 year ago (in October 2018):
https://www.justice.gov/usao-sdny/press-release/file/1101106/download
Paragraphs 5 and 6 describe a long running operation lead by a NY-state task force to crack down on kmps.
It doesn't seem a fluke that MSA and DA have set up shop across the Hudson in NJ. Although they are just a short hop across the Hudson, they don't need to worry (as much) about the NY-state task force crackdown.
Can there be a return to the old days? Well, I believe the talent is out there. The problem is the risk-reward tradeoff doesn't inspire an entrepreneurial MMS to set up shop in NYC with top-tier kgirls.
I understand that the "old" khouses used to take in 4$ - and that was like 5+ years ago in (what seemed like) a lower risk environment. Adjusting for the times, (increased wages / asset prices and increased risk due to state / federal enforcement), these khouses would need to take in 5$ to 6$.
But, nobody wants to go above 3$. So, for half the price, you don't get both good looks and good service, you choose one.