It depends really on whether you accept that 'a classic RPG' is now the minority within its own genre.

Among the big mainstream games, in my view it is the case now that [Genre]+RPG is more dominant in the market than what you would call a 'regular' RPG, if such a term can even be nailed down. Action RPG is the most common game that uses the RPG label still, I think. Most Action RPGs use RPG elements, if not the whole mechanic. So a game might have level-ups or ability trees, but the combat mechanic is real-time, non-ATB action.

As to whether or not the genre is better now than before? Not sure. Clearly, games like Final Fantasy are still being made, but they are very very different from say, FFX, which was probably the last 'classic RPG' in the series. Every game after it has incorporated more and more action elements. That said, I did really enjoy FFXII and the gameplay of FFXIII and the rest of its line.

I also enjoy games that use RPG elements in a distinctly western action setting. I love games like Dragon Age and Mass Effect, allowing you to pick abilities, focus on item management and creation, and exploration elements. I wouldn't say they've devalued the genre, but rather, made it more accessible to people who would find playing FFIX anathema, but enjoy the RPG elements and customisation of a Dragon Age game. They couldn't understand things like ATB and leveling up job classes, but they're more than happy to agonise over which mage build to use.

That being said, I do wish there were more classic RPGs in a modern style. I *still* haven't played Bravely Default, something I really need to do, but that was a really popular game and proved that classic RPGs are viable. Games like Shin Megami Tensei continue to be hits elsewhere and are cult hits in the West.

Basically, my view on RPGs is - it is a strength of the genre that it has flexibility to adapt other forms of gaming, but I do wish that just 'straight' RPGs had more exposure and weren't just seen as the odd occasional sensation. Then again, I am no expert on these kind of topics, so I'm probably missing something.