can languages degenerate?

Pidgin is defined as a "contact language, is the name given to any language created, usually spontaneously, out of a mixture of other languages as a means of communication between speakers of different tongues." Over time, it might evolve into a full-fledged language. Well, here is my question - can a language degenerate into Pidgin? Ask any Indian to speak in his native tongue and he will use some combination of English, Hindi and his native tongue. Obviously, it is not the language that has degenerated but people's use of the language, but for all practical purposes, the language has changed forever.

...which leads me to wonder about the paths to popularity of languages - is the "English" path of borrowing words freely better than the "French" approach of creating new words.