It can be said that yes, the anime industry has declined over the past years. There are new anime series that are being released but they are not the choice of people anymore whenever they want to watch something. There are DVDs that are being released but they are not selling so well as compared to the series that were released in the past.
There are still some people who are into the old anime series or some that are still on-going up to now. It will be hard to think of a new anime series that is well-liked or has been receiving universal acclaim. Who knows, the anime industry may improve in the future.
No, the anime industry is not declining. Every year brings more and more anime (and even manga!) that anime watchers are very excited for. Many people consider us to be in a fourth anime "boom" of popularity. Some of this popularity can certainly be attributed to hit anime being released like Attack on Titans and Fairy Tale.
There are several anime which have hundreds of episodes and are still being created today. One Piece and Pokemon are two insanely popular animes which are still producing watchable episodes and cranking out tons of merchandise which is widely available in stores.
