Churches have a legacy of being the focal point in a community. It's no more surprising that a small town would have that many churches than it is that they would have bars or community centers.
Society is changing. Small towns are getting smaller as kids move away. Also, church attendance is down as people go to Starbucks instead. It will balance out over time.
That's not how small towns work. When I was a kid there was 1 bar, 2 restaurants, 4 community centers (arena, legion, golden age home, library), 2 schools and 10 churches.
The largest building the town was the middle school. The next 3 by size were churches.