Anime Decline

Itai News has a report via Japan Probe about how the Anime industry is on the decline.

In the report a producer says that DVD's don't sell because users have become desensitized to the amount of bishojo and mecha titles which all look the same. With HD recordings at home becoming more popular and young folks with less expendable income, the only solution is to come up with quality titles.

Among the comments at Itai News regarding this topic are:-

-Lower the price!
-Our pockets don't go on forever.
-DVD's should have at least 4 episodes.
-Quality - not quantity.
-Instead of complaining, do something about it!
-Too much crap moe anime.
-7,000 yen for 2 episodes is out of the question
-Cant stand watching the continuous amount of crap series.
-Who wants to watch crap quality expensive DVD's?
-The late night anime are full of moe anime - boring!
-Instead of ero anime, make proper titles.
-Too much cheap crap anime.

I do find myself watching less anime. Lots of titles but the only one which I follow religiously this season is K-ON!. Got Queens Blade on stock too as I'm ecchi that way.
Instead of watching some of the new series, I'm catching up on old titles which I havent finished like Macross Frontier and Romeo and Juliet.

What do you think about the current state of the anime industry of late? Are you watching less or more anime? Do you go out and buy DVD's?
I'm presuming the production costs of a DVD is low so they make money from a larger margin but from the consumers perspective, I would recommend giving away quality freebies with a DVD to push sales.