personally I think the RPG genre as a whole has been growing but mostly western developed ARPGs in si-fi settings as a few years ago there were virtually none.
I try not to look at RPGs as just Wrpgs and JRPGs as the RPG genre is very diverse and both western and Japanese developers make games in several different RPG sub genres, sure most Japanese RPGs are like FF but games like The world ends with you, fire emblem and Advanced wars etc all came out of japan too and they are very different games, and just because most of the high profile WRPGs of the last couple of years on the consoles at least have contained some shooting elements it doesn't mean they all were games like the Witcher, fable II (yes it's an RPG KylieDog if you think it's not you don't know what an RPG is) Titan Quest, Oblivion, mount & Blade all came out of western developers in recent years.
And on topic yes western developers have been more prolific recently but Japanese developers aren't going anywhere, and both have big games in the next year or too with FF XIII and Diablo III plus many more
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