I wish there were more jRPGs as well.
But when there is a new generation of gamers that won't consider any thing that doesn't involve looking down a gunsight, it's a problem.
But I also think it was a problem with jRPG devs trying to fix what wasn't broken (especially SE with the FF series). Most jRPG players are looking for a good story and a memorable cast of characters than "innovations" or huge massive CGI sequences. Xenoblade is a good example of a jRPG done well.
Another problem with the genre is as graphics get better, the character designs come more to life. And as we see, lots of Western gamers are uncomfortable with male characters that don't have biceps the size of watermelons.
"Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, IT IS THE LEADERS of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is TELL THEM THEY ARE BEING ATTACKED, and denounce the peacemakers for lack of patriotism and exposing the country to danger. IT WORKS THE SAME IN ANY COUNTRY." --Hermann Goering, leading Nazi party member, at the Nuremberg War Crime Trials
Conservatives: Pushing for a small enough government to be a guest in your living room, or even better - your uterus.
