Good point crisis...I forgot about Bowser. You're absolutely right, that release certainly did bring the Mario line to a screeching halt...we haven't heard anything since.
I wonder if they themselves RECOGNIZE this is an issue. Take Hasbro for example, yes...they have their flaws, but they're pretty receptive to fan-feedback. Take Marvel Legends, they NOSE-DIVED the line as soon as they got the license with horrible sculpts and reduced (or cruddy) articulation...but they took the fan feedback, and managed to resurrect the line. I don't think it's as widely-dispersed popularity as during the Toy Biz days, but they managed to turn it around.
I used to be a G.I. Joe fan and when they brought G.I. Joe back in early 2000's and eventually turned it into the 25th Anniversary line...that was thanks to fan-feedback and reception. I went to the Joecons where Hasbro reps directly listened to feedback.
With Tamashii working on lines that are certainly going to be aimed at the International (and Western) market, they're going to get that critical feedback about scale-concerns...I just hope they soon realize it and act on the feedback. That's certainly a good questions/comment to make to Adam Newman next time he's seen at a Con.