We can't really say LoS2 is a flop yet, as it hasn't even been out a month. I think the only sales data we have is for the UK, but even considering what we have, it may have sold less than Lords of Shadow 1, but it still sold more than any other Castlevania game, so by your logic all of the games prior to this series have been flops, so its in good company.
Also, console wise, yes I do believe he's correct. When it comes to consoles, the Americas and Europe basically buy them all. Japan as a console market has been and continues to shrink, with focus and interest heading towards handheld and mobile games. Japanese game companies, if they want to continue to make games for consoles, AAA quality or not, basically have no choice but to tailor games to what western audiences will buy if they want to remain profitable.
I believe if we get any more 2D Castlevanias they will be for the 3DS or something akin to Adventure ReBirth, made for download from PSN, XBM, or Nintendos eShop.