Has the genre really faded? Larian seems to have done quite well with BG3 and the Divinity predecessor games. Owlcat games with Pathfinder series and Rogue trader has also done well.
I would have much rather Bioware tried to do a similar last hurrah with an isometric RPG or any RPG for that matter. I suppose they have, with Andromeda, but that is 9 years old already.
Ultimately, I think Bioware's problem is much simpler - the greatest talent has already left by the time Andromeda released, and the leftovers were too busy checking boxes on corporate cultural requirements rather than making an actual game.
There was probably a huge cultural shift in the years that followed the EA purchase, which was already a decade before Andromeda. Frankly I struggle to justify Bioware's relevance after the ME Trilogy was concluded. I could not get into a single one of their games past that, started a few, but never finished.