Unfortunately, personal observation won't really tell you what's going on with LOTR. Even back when it was (according to GW) outselling WHFB and 40K in the UK, people were saying that nobody seemed to be buying or playing at their local stores. The people buying and playing LOTR largely seem to be just a different crowd to the WHFB and 40K players, is all. They don't always frequent the same stores, they don't hang out on 40K-centric forums, and they generally seem to be buying to play at home, or just to collect the miniatures. As to whether GW can dump it, you're assuming they want to... So far, while the drop in sales was attributed to the blowout of the LOTR bubble, they haven't come out (at least so far as I'm aware) and said that it is consequently doing poorly... just that it's not doing anywhere near as well as when the movies were out.
|