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Well he is right that JRPG's were never big in the west (except FF), but that dose not mean that they haven't declined. 

 As for why JRPG's are struggling -- its because they have horrible voice acting / translations in the west, the time investment is too much for casual gamers, and there are too many times where the game expects you to stop what your doing and grind to progress unless your exceptionally good at the battle system. 

 To fix this i would look at adding difficulty settings, make side quests more fun and rewarding and add in places i can go to grind via some side quest or mini game (still combat based, but better than running in circles to grind).