While that's all true, my understanding is that it's only one half of the issue.
Other issues that I understand are/were:
-Fantasy has been outsold by 40K for awhile now. Which isn't an issue in of itself, but it's a noticable difference.
-I don't know how true this claim is, but apparently part of the reason why Fantasy sales were stagnating was because of how the game operates, where unlike 40K, players usually rely on more massive armies (in terms of no. of miniatures). So, for those already with Fantasy, there's little need for them to keep purchasing for an army after a certain point. But on the flipside, Fantasy is difficult for newbies to get into because you need to spend a fortune to get a viable army. This is in contrast to 40K, where Space Marines for instance tend to be a bit more versatile.
-Similarly, I also heard that Fantasy had balancing issues, that there were just too many armies in the game.
While Games Workshop kind of went a bit copyright mad after the "Spots the Space Marine" debacle, sad reality is that the Fantasy setting just wasn't bringing in the dough. 40K was the breadwinner, the people in Fantasy weren't buying, and new players weren't coming in.
That said, still pissed that they had to end the setting though, and retcon the Storm of Chaos campaign in the process.
