Downfall of the Buddhist religion? I feel that Buddhism is not what it used to be (the original teachings of Lord Buddha). It has got corrupted and what is left mostly relates terminology and worldly-matter and excuses. For-example: recently I came across a question in which someone said Buddhism teaches it is okay to eat meat, drink wine, etc. with various excuses such as it's okay as long as the animal isn't killed particularly for you and so on. I think, like Christianity and Hinduism, the teachings of Buddha are mis-interpreted for one's own benefits and the discipline with which Buddhism started out has long faded. Neither remains the atheism which Buddha preached, for example see: this. People have forgotten the abstract concepts and the Buddhist way of life and instead focus on miracles, folklores and powers that Buddhists monks possess. The question: Do you think so too? If so, provide references of Buddha's teachings being mis-interpreted. If not, tell me then what was it that Buddha forbade, and if it was nothing, then why is Buddhism a religion? Shouldn't it be just living your life the usual way?
First, we can't tell with absolute certainty what is the original teachings of the Buddha -- unless we were there. In principle, any buddhist who says "this is the absolute original teachings of the Buddha" is putting forward a belief. A belief that may have varying degrees of proximity with the real facts. But that belief can be quite different from another buddhist living in a different buddhist culture.

So a question here is how can we tell what is original and what is not? People who misinterpret something think they interpret it right. How are these people different from "us", those who think interpret things right -- maybe we are the ones misinterpreting it. And what is the source of the information misinterpreted? A text? A teacher's word? A feeling?

Five hundred years after the Buddha, there were over 18 distinct names identifying distinct buddhist groups. These already disagreed with each other in some topics, so of course two thousand years later buddhists still disagree with each other over topics. 

But also, there are buddhists and there are buddhists. For example, Brazil has a large percentage of catholics. Most likely, the great majority never read the bible. It's reasonable that many buddhists are buddhists due to being born in a culture of buddhism, but this does not mean such a person is familiar with the entire doctrine -- or with any word believed to be said by the Buddha. The general case is they don't know. There are even buddhist monks who didn't even know scriptures quoting the Buddha existed.

Moreover, just because there's a large population who are not quite engaged with their religion doesn't mean the religion is declining. After all, there are the buddhists who take it seriously, who dedicate their life to it.

Also, some people come here with varying degrees of knowledge of Buddhism and very distinct interests on Buddhism (e.g. super powers), who may not even be buddhists themselves, and may ask questions that are perceived as strange to some buddhists. But these questions are not evidence that buddhists are going bananas.

It seems to you Buddhism comprises some abstract concepts and way of life that you claim have been forgotten. But other Buddhists are following their traditions -- which they claim to be genuine -- or are reading old scriptures -- which they believe to contain the words of the actual Buddha. To them, Buddhism is being practiced. They think themselves to be genuine monks when they follow what they read in the scriptures, e.g., that the Buddha instructed them to not eat meat if they know the animal has being killed for them to eat it.

And to answer your question: yes, the Buddha forbade, in the sense that he instructed people to abstain of many kinds of actions.

But forbidding is inconsequential for a doctrine to be a religion or not. One could still spawn a religion by just saying what people should do or how people should understand their lives, etc.