Final Fantasy XIII sold more copies on PS3 alone than Mass Effect 2 did on every platform combined. The Elder Scrolls throws a wrench into this comparison, but those games are on the popularity level of Mario and Call of Duty. Final Fantasy was never that popular and few games in history have been.

Every genre has its winners and losers and just because a few JRPGs sold a paltry amount of copies does not overcome how Eschalon: Book One, Gothic 4, or Legend of Grimrock did the same.

To answer some other OP icebreakers:

Or do you feel its more about the genre regurgitating too many of its own elements making every game a bit too predictable? Or is it because the genre is trying too hard to emulate other successful franchises?
I think everyone on this forum will agree, this definitely isn't endemic to JRPGs, much less Japan.

RPGs just aren't popular, period. It's why every Western one who goes or tries to go big has eliminated all vestiges of RPG mechanics in order to appeal to the masses. So has the new trend of Japanese Action RPGs like Monster Hunter, God Eater and Dark Souls.

In any case, it doesn't matter. There's still lots of great JRPGs coming out, on handheld and console. Even PC now that Ys is all over Steam.