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A smart entrepeneur should open a modern but smaller "farang and friends venue".The resort style may have had its day
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I always preferred the older, much smaller Babylon at the top of the Soi - now a restaurant called Pandanus. I have many happy memories of that place. But I think it is also important to remember that there were far fewer saunas in the 1990s. Quite a number of Thais went to Babylon who, were they transported forward ten years, would probably now prefer to visit some of the mostly sticky-Thai establishments.
In terms of size and facilities, I believe Chakran remains very popular and it has many of the facilities offered by Babylon, thought smaller in size. Also, from reading the gay magazines, one of the saunas in Ramkhamhaeng (Farose 2?) is supposed to be the largest in the country. So the clientele a sauna caters to must also play a part in its popularity - or otherwise.