Agreeing with a lot of these points, I thought I'd add that I think an important distinction is that the era the OP is talking about, the large developers were making standard RPG's. Now, they make things like Dragon Age, Skyrim, Mass Effect, Witcher MMO's, etc. Those are still legitimately RPG's, though as TheChubu pointed out, they've replaced much of the dice rolling and such with more direct mechanics. Additionally, I think you don't see many small devs, and certainly very, very few solo devs making "traditional" rpgs, simply because of the sheer amount of content required. The amount of dialogue, artwork, audio, etc for a traditional RPG is pretty daunting/near impossible for a small team/solo developer. So, I think you haven't seen much in the way of rpgs (again, of the late 90's sort you're likely thinking about) with the rise of independent developing, and large developers have mostly moved on to the aforementioned type of rpg.
So, in a nutshell, they require a large team, the large developers aren't doing them, and the small ones can't (or to some extent won't. There really is probably a limited audience).
That said, I think even of the turn-based, dice rolling late nineties style rpg, there are plenty of recent examples. Certainly a bunch of GameMaker ones have come out. I know my steam library is full of 'em They don't get the hype they used to, and they might not be quite as large, but they're there.
I was just thinking that a lot of people seem to be looking for a retro feel in everything these days. It feels like there has been some form of disconnect somewhere down the line.
I think people just consume things way faster and in a greater amount than they used to, "innovation" can't really keep up, but it's easier to give a new spin to something old. This is pretty esoteric, but I don't know if you ever read John Barth's "Death of the Novel," but back in the 70's he pretty much proposed that we'd essentially reached the end of "new" stories to tell, but concluded that there are infinite ways of retelling, twisting and combining the old ones. Same goes for movies and games, I'd say
/end esotericism