Joseph,
It’s both. There is clearly a lack of religious energy here. The bigger crowds create more energy, which creates more action. If you are around motivated people, that can motivate you and help you reach higher. That’s the biggest thing I miss from living in the NYC area.
On the other hand, it’s much easier to fake it with externalities, like clothing and manner of speech. In such an environment, one can mistake going through the motions as being frum, even while a person does a lot of bad.
If you want to be frum out here, you got to really mean it.
This reminds me of an idea concerning the difference between Yosef and Yehudah. Yehudah is a frum guy with the family, but on the road he succumbs to temptation. Yosef looks like a spoiled soft kid until he goes out and develops his Tzidkut. Yosef gets tempted for a year and holds strong. Different people thrive in different environments. Some need support to grow, while some need more challenges.
I read that from Rabbi Riskin many years ago.