The reason I think this is because there is really no need for them. From what I understand they serve little political purpose, but more of a touristy purpose. I understand that a large sum of many is made from the royal family but having them in the lime light serves no real purpose.
As an American, when I watch coverage of the Queen of Britain or a Royal wedding, I sit there and scratch my head. I know a lot of people who live in these countries find it ridiculous, but there are some who will sit there and eat up a town crier reading a declaration off of a wizard-like scroll. Time to move on.
I think that they should just not have as much power as they currently do, or how much they think they have and I also think that the fact that they are celebrities in the west is a problem too because we fought to stay out of their hierarchy a long time ago.
The Royal Family although with their own bouts of drama are still yet an icon on history. Their leadership, thier proper, their classy, their way of life, is all still very alive and well and still respected by many in social and political communities alike. To dismiss the Royal Family would be a loss to the world.
No, they are still needed and should not be dismissed. Although they no longer have powers over the government and rule the country, they are still important figures to a country and to the people of a country. The royal bloodline should be kept going and kept in the public eye.