Not quite right. The scene is much more fragmented in London, there are loads of nights run by various long timers, scene returnees, ex mods etc. Whilst we don't tend to have the "nostalgia" element either....what we do have is on one level excellent gigs like Marco S's and Leona's, and at the other extreme former mods / returnees playing boots. And it's not all northern either small 70s / crossover venues exist as well.....Allnighter wise there is the well supported Crossfire and there is of course the 100 Club.
Fewer people yes, but not the same "nostaliga scene" confusing things either. There's certainly no bus loads of hand baggers turning up for a good Saturday night out with "The Snake".....