It's important to note that Counter-Strike's massive popularity (and funding) comes largely from the skin betting industry, which is entirely built around underage gambling. I'm not sure their viewership would survive a proper reckoning with that.
Do you have any source for this? I've been playing Counter-Strike since the original beta, and it's been popular since its creation, far before skins existed. As far as the funding goes, I have no idea, but would love to see some numbers.
I don't belive that there are public numbers disclosing the funding sources for tournaments. Valve throws in a bit, and betting sites are often sponsors.
CS was totally popular before skin's. I recall the riot shield being particularly fun for me.