It's not really the genre that is dying, it's the consumers that are changing. If anyone has noticed, with the new generation of consoles game a new generation of casual gamers and because they seem to be the majority market, there is a far less likelihood of JRPGs finding shore in the Western world amongst all the God's and Gear's of Wars. And motion-bloody-control.
The Japs are still releasing their quirky, JRPG types but because there is no longer such a big demand, we can't get our hands on them. It's true, people want big, flashy, Hollywood production values at the expense of what could be an epic, long, worth-your-every-hour-and-cent masterpiece. I still have yet a game to find that beats the sheer amount of enjoyment and quality that was brought about by Final Fantasy VII-X. Despite their graphics, they are still brilliant. Then there's the whole sandbox thing and the whole moral choice thing. It appears that something cannot be an RPG these days without them, and that RPGs are somehow bad without them. Frankly, I love JRPGs and I don't want them to go away. I'm busy playing Persona 4 now and despite being released fairly recently, this game is epic and my PS3 has taken to under my bed for the time being. The game, of course, just did not receive very much coverage and advertising, however, amongst all our giant Microsoft, EA and what-have-you splatter marks.