JRPG's aren't dead, it's just that the good ones aren't released that frequently. Persona 4 came out last month in the US(Comes out Spring in EU - I imported) and that was an awesome game, fair play it didn't add much to the series, it just improved on the formula that Persona 3 had, like removing the monotonous Tartarus grind. Plus I don't think JRPG's are everyone cup of tea.
That does lead me onto another thing though, what I find hilarious is how people say that JRPG's haven't "evolved" much since the genre started. Yet if you look at other genre's, they haven't "evolved" much either. FPS' are still the same as ever, pick up a gun and some ammo and shoot enemies which often only have about 10 different models throughout the game(excluding bosses) and go through a building, city, or whatever. Adventure/Platformer games haven't changed much, jump, dive through areas, killing the odd mob you find crawling the area etc. RTS' still the same style, have a uni at the bottom, build your troops up, and destroy the enemies camps.
One massive thing about this generation is that people care too much about graphics, course you don't want it to look like a pile of shit in this day and age, and naturally it's nice for things to look really pretty. However if it means that the quality of the gameplay and story is interupted, then it seems a bit of a waste, since its a game, not a movie. I think thats why alot of the really awesome games on the PS2 are being overlooked.
We can go on about how the genre is dead untill we're all dead, but when you think about it, the question should be, are all games dying out, not just a genre itself.
