There have been some attempts, I guess. Dave & Busters seems to do pretty well, but these seem to be targeted at adults and the games are nothing like the old days, IMO.

I feel like the arcade concept could potentially be brought back, but it would require some creative thinking.

People have, there are many "barcades" in large cities around the US. As the name suggests they combine alcohol, food, and arcade/pinball machines (depending on the location I've seen free to play and token machines)