Tokyopop Fall Down, Going Pff.

[Epsilon]

The problem is that publishing costs money. If the publishing house produces a product that makes no money, then that publishing house lost money. That means that the money is gone  and can't be spent on good anime. The simple fact is that since the ratio of good anime to bad anime is so low and the ability to predict what will be good and what will be bad is effectively impossible that means that less and less money will be spent on any new projects at all.
This is why in areas where there is no copyright protections or very weak ones, the industries quickly collapses (like in China, Taiwan and so on).
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Epsilon