They're not dead, but quality is severely lacking compared to quality on previous consoles and handhelds.
JRPGs released now are, on average, worse than JRPGs in the past. There are good JRPGs that came out, but not on the level and consistency that they did in the past.
I'm not a fan of the "innovations" RPGs receive today though either. WRPG developers give a first or third person shooter RPG elements and it's innovation. Mass Effect and Fallout 3/New Vegas are crappy first and third person shooters with some RPGs elements that do nothing to make the gameplay more enjoyable. This is in comparison to actual innovations to the RPG series in the past. The ATB system, Parasite Eve's action based ATB system, Vagrant Story's combat system, Grandia's combat system, the SMT press turn system, the tactics system brought about by games like Fire Emblem on the NES, etc.
If that's not enough, Square Enix is milking the Final Fantasy series so hard that I wouldn't be surprised if they're attempting to kill it themselves. Capcom wants in on the action and kills the Breath of Fire series with the announcement of the sixth game. You should have just left the series to die on a good note, Capcom.
*edit*
I'm not against WRPGs, just garbage overrated ones. I like Dragon Age Origins, Baldur's Gate, Might and Magic, etc, etc, etc.
