I see no decline in the duan system in China
The duan system is an international ranking system established by the PRC. It's not exclusively for wushu at all, but given that most of the major political players in PRC now wushu, it's dominated by wushu people. Still, there are some traditional masters that participate in this system.
We discussed the duan system in our cover story The Muslim Master of the Old Empire: An interview with Grandmaster Ma Xianda from our 2002 November/December. This online article is unabridged, but it doesn't include a short sidebar that ran with this article that broke down the duan system a little more completely. Basically, duan 1-3 is certified on a municipal or city level, 4-6 is certified provincially and 7-9 is national. There are a lot of issues with the duan system because it's based more on politics than skill level, but given the nature of the beast, that's not surprising. Keep in mind that teaching martial arts is a respectable career in PRC - people go to college for it. There is a national system of certification and it is tied to the duan system.
What's ironic is that Shaolin has established it's own independent duan system, which I reported in Battling to be Shaolin’s Best: The Shaolin Kung Fu Grade “A” Tournament in our 2003 Shaolin special. Other groups have established duan systems too, mostly outside of China. What's funny is that some of the non-PRC duan systems go to 10 instead of 9, which betrays a fundamental misunderstanding of Chinese culture. It's a classic clash of East vs. West that reminds me a lot of Spinal Tap (this amp goes to eleven!)
You might take a peek at our latest cover story too - The Big Monk of Shaolin Temple: Mantis Grandmaster Yu Hai in our 2007 January/February, since it discusses a leading master who rejected the duan system.
Chinese Wushu Association - Duan Rank
I was wondering if any of the forum members had any knowledge pertaining to the Chinese Wushu Association's method of duan ranking. Would this be a useful credential to seek out? Any information would be helpful. Thanks in advance.