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Racers in general seem to be receiving less attention.

Burnout: Paradise is down 50% from Burnout 3. Burnout: Revenge actually sold even less than that.

Project Gotham Racing 3 & 4 are down from 1 & 2, despite having a larger userbase.

Furthermore, there are few new racer games with the same sales as Crazy Taxi and the Simpsons racers had.

 

It seems the the "real racers" (non Mario Kart really) are down a fair bit this gen.  It's not that the quality has decreased, because relative to the sales of the racing genre, it's not down a lot.