It's a shame, cos as a kid I always preferred IVC, felt so much better than out of vision. Doubly so when said OOV is pre-recorded. Pretty much every kids slot/channel apart from Cartoon Network has done IVC at one time or another (and even CN's had periods of live continuity with real-time animation), now it's only CBBC, CBeebies and Milkshake that still do it.
It is a shame. I loved growing up with IVC early 90s on CITV & then solely on CBBC until the 1998 relaunch. I enjoyed Milkshake's original live continuity too with Lucy Alexander, Konnie Huq and Eddie Matthews, then with the launch of T4 in October 1998, it seemed to be that everyone was doing it, and things felt so much better for it - in my opinion. I didn't get sky in January 2002, so (albeit a little old, possibly) enjoyed the IVC on Nickelodeon, with Nick L8R and Disney Channel's Studio Disney. I remember thinking that Studio Disney felt like such a big show, a bit like a Saturday morning show, every afternoon.
I presume over the years, the restrictions in budgets due to the junk food advertising ban and the reduction in live viewers due to an increase in on demand hasn't helped this.
For CITV, it's not only the lack of IVC, but the lack of original programming that has suffered. I know that the old ITV block relied a lot on Nick & CN shows plus Pokémon and Digimon around their original shows, but the originals were of high quality and very entertaining. The quiz shows and factual programmes were very well produced and provided something that you don't get these days.
I'm sure that I'd watch new versions of Fun House, Art Attack and How 2 if they aired somewhere today!