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Ok, maybe I'll give a fuller anbswer, because I'm getting a few weird looks.

The 'music' genre of games doesn't seem to have peaked, but individual release may see lower sales.

Guitar hero games are coming faster between releases
Last generation there was very little overlap between the games, Guitar Hero, Singstar, Donkey konga all lived seperate lives.

Now we have GH, RB, Wii Music, Singstar, Lips all having some crosssover, and all with games released in the last month or so. Of course they are going to cannibalise each other.
It doesn't seem like Lips will warrant a sequel (imo) and if Wii Music does get a sequel, it wont be a 'one a year' affair like GH and RB, so next year is looking up for GH, RB and Singstar.

The existance of downloadable content also extends the lifespan of these games (making decreasing sales not surprising) and means the devs get more money per game (making the news not worrying)

PS Wii Music will be huge :P

Maybe