I think that if you're willing to accept games that aren't technically RPGs, then you will be satisfied, but otherwise, it will always be lacking, unless you're a big fan of Western games.
The only game that I played on home consoles that I consider to be a JRPG (well SRPG actually, but still) and is in the league of past great games is Valkyria Chronicles. There might end up being a few more, at least on the PS3, if Xillia, Ni no Kuni or Versus 13 end up living up to the hype, but I don't think that any of those games except for Versus 13 (and that's only assuming that it will live up to the hype) will have the universal appeal that many of the top SNES/PS1/PS2 RPGs had, or that the top handheld games on the PSP or DS have currently.
Nier is definitely an epic game, well in league with past greats, although its party system is so limited that I don't really consider it to be an RPG. It's still a must play. It's really more of an action adventure game, although the SHMUP elements in some boss fights really won me over gameplay-wise. The characters are extremely deep and there is tons of sarcastic and humorous commentary made by the characters often during boss fights and when you start quests.
Yakuza 3 and 4 are in a similar boat to Nier, but they are absolutely must play games in my eyes, especially if you want an immersive story and characters with high production values. Basically they are brawler beam 'em ups (the old school kind) with RPG elements, and a lot of exploration. I'd say that Yakuza 4 is my favorite game home console game this generation, at least so far.
I don't have an XBox 360, but I've heard from a few people that Lost Odyssey is a system seller, and very much targets the old school JRPG fan.
Also, if you have a PC, there are a number of significant visual novels made recently, some in English. On the PS3, PSP and Wii you have 428, on the PS3 and Wii you have Imabi Kisou, although no version is in English. On the PC, 360 and PSP you have Steins;Gate and Chaos;Head, both playable in English on the PC. If it counts as a current generation game, there's Ever 17, on both the PC, PSP and 360, although the PC version is the only English release of the game.
As for WRPGs, I don't find them very appealing this generation for a variety of personal reasons. Ironically I liked them a lot when they were struggling commercially in the 90's, but the current batch just doesn't appeal to me much at all. (I don't like the character designs, storytelling styles, moral choices/decisions, or overuse of nonlinearity, although I like the 90's/00's style a lot gameplay-wise, particularly games like Planescape Torment and Might and Magic VI) But everyone's preferences in games are different. I think the Mass Effect games are pretty good, although their gameplay doesn't appeal to me much at all.
There are a lot of good but not epic (at least story-wise) RPGs on home consoles this generation, such as Resonance of Fate, the Tales games, and a few others.
I think whether or not such an RPG will exist on home consoles, is mostly dependent on what Atlus does. If they decide to make such a game, it will likely fit that category and outclass everything else. (at least in my opinion) The economics of Japanese games do not favor this however, so the next game from Atlus will likely be on a handheld.