Good article in the Daily Mail covering the surge of interest in needlepoint. It attributes part of the trend to designers such as Jonathan Adler taking a renewed look at needlepoint-based design.
Another point made by the article, and a much stronger argument in my opinion, is that modern needlepoint design itself has changed. Brighter colors, bolder graphics, and cooler messaging — all these contribute to greater adoption of needlepoint among the younger generation.