I brought this very thing up several years ago and was lucky to make it out of the room in one piece!
Makes no sense at all to me that you can have 3 troops/packs meeting within 1 mile of each other, all struggling to draw more than a hand full of members to a meeting.
I agree, that's certainly not a conversation that should involve all members of the troop. I would think Key 3 and maybe 1-3 more if there are long term committee members with positions who know all the parties involved would be sufficient and appropriate.
But, it doesn't sound like the OP actually engaged in any significant dialog with the CC on the issue, so it's hard to know if the CC saying "lets discuss it with everyone" meant literally everyone or if he/she meant it the way my CC would have with just the core Committee members.
Insert my general rant that the cub program should be split into two groups, roughly k-2 with a lower general time commitment, and 3-5 with a higher level of engagement, but because the kids are older its less stressful for the leaders. Reducing burnout in the cub program would help a lot.
I do think the rise of more organized sports (and higher levels of commitment for all extra curricular) has certainly affected scouting. There's a question of how we can either be priority #1 for a few kids or a consistent #2 option for a bunch of others.
I also think that there has been a general fracturing across all of American life. The conformity of the 50s changed into the individuality of modern life, which means that each program like scouting has to compete more directly. Getting back to the basics of our core competency instead of being everything is important.