Eh, I think that's a slightly rose-tinted memory. That era gets a pass because they sort of let some talented women have actual matches and storylines, but it was also the era of puppies, the TIT, PMS, bikini contests, and bizarre degrading gimmick matches. As a whole, the offensive stuff sort of outweighs the good, but... well, let's be fair... WWE doesn't talk about anyone but Trish and Lita. Look at WWE 13. Look at all the 'special' episodes of Raw. If you're a women not named Trish, Lita, or Sunny, you basically never existed. Well, unless you're purely 'old sexual comic relief' like Mae Young, in which case you exist AND still get used.
Once WWE stopped being able to sexualize their women outright, I think interest in booking the division just stopped. It's like WWE's view of women and the PG rating are just totally incompatible. Even with a decently talented roster (Beth, Natalya, Tamina, Gail Kim, Awesome Kong) they just froze. So, yeah, I have to believe it's just completely apathy at this point. They can't sell them as T&A, so they have no interest in selling them at all. That's my take-away, at least.
I don't know... maybe it'd be different if Kong stayed around. I'd guess the sheer force of HHH's ego was the only thing that could've resurrected the Divas division, but that's obviously over.