I see the "woke humanities" trend of 2010s-present as a ROI-minded professional instrumentalization of those majors: orientation of the majors at ideologically loaded, expansive NGO sector. That's why the trend flowed so seamlessly from the "Digital Humanities" push of circa 2010, which was also an attempt at ROI-minded professional instrumentalization. These things have been about professional instrumentalization all along. And what's more these things sort of worked: at least for some and for a time. But also came with massive tradeoffs. I think the new gains were ultimately not worth the sacrifice of previously built-up reputational capital.
Conservatives tend to have trouble grasping any of this, and think their goal for higher ed policy should be to create rewards for programs that maneuver ever more deeply into professional instrumentalization.
I think the simplest, macro-level answer is that the rising tuition costs combined with more competitive job markets for graduates have forced college students into majors they think have a positive ROI,
or perhaps more precisely, rising tuition + competitive job market has *narrowed the universe* of college majors perceived to have a positive ROI.
It would be interesting to investigate this hypothesis along two lines:
1) does humanities enrollment change with the price of tuition (would expect cheaper tuition to correlate with more humanities majors, because students feel less pressure to immediately get a high-paying job after college)?
2) does humanities enrollment change with the household income of the student (would expect higher rates of humanities enrollment for wealthy students who think about their degree in terms of prestige or status rather than economic ROI)?
As much as I hate 'woke' & largely successfully avoided it during my own education, I don't think it's why undergraduates are avoiding the humanities. Many undergrads & grad students are more radical than the faculty, of course.