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JRPGs are not as popular as in the late 1990's, but I think that they are in no way 'in decline' from last generation.  The majority of what I would call the 'big JRPG series' are either seeing increased sales this generation or will by the time they are discontinued.

Those already outsold

 

Mainline Pokemon RPGs

Pokémon Diamond / Pearl Version (DS)
Nintendo
6.60 6.00 4.96 17.56
Pokémon Ruby / Sapphire (GBA)
Nintendo
5.74 5.38 4.26 15.38

 


Mario & Luigi

Mario & Luigi: Bowser's Inside Story (DS)
Nintendo
1.68 0.78 0.34 2.80
Mario & Luigi: Superstar Saga (GBA)
Nintendo
1.46 0.47 0.19 2.12

 

Paper Mario

Super Paper Mario (Wii)
Nintendo
1.48 0.59 0.86 2.93
Paper Mario: The Thousand-Year Door(GC)
Nintendo
1.32 0.46 0.27 2.05

 

Dragon Quest Monsters

Dragon Quest Monsters: Joker (DS)
Square Enix
0.23 1.49 0.00 1.72
Dragon Quest Monsters: Joker 2 (DS)
Unknown
0.00 1.21 0.00 1.21
Dragon Quest Monsters: Caravan Heart(GBA)
Unknown
0.00 0.64 0.00 0.64

 

Pokemon Mystery Dungeon

Pokémon Mystery Dungeon: Explorers of Time / Darkness (DS)
Nintendo
1.85 1.54 1.27 4.66
Pokémon Mystery Dungeon: Red Rescue Team (GBA)
Nintendo
0.73 0.76 0.57 2.06

 

Ones that will in the future:

 

Dragon Quest

Dragon Quest VIII: Journey of the Cursed King (PS2)
Square Enix
0.62 3.68 0.69 4.99
Dragon Quest IX: Sentinels of the Starry Skies (DS)
Nintendo
0.21 4.33 0.31 4.85

 

Pokemon Remakes

Pokémon FireRed / LeafGreen (GBA)
Nintendo
4.45 3.15 2.89 10.49
Pokémon Heart Gold / Soul Silver Version(DS)
Nintendo
2.72 3.88 2.25 8.85

 

I didn't put Fire Emblem down due to missing numbers, therefore not really a fair test

Don't get me wrong, I think JRPGs are in decline from their pokemon RBY Final fantasy VII fuelled height, but I believe that JRPGs not called Final Fantasy or Tales are generally on an increase in popularity from last generation