I noticed it too..it is a shame as Amazon and Netflix is on the move, but still has a way to go. I am another who likes to walk the isles in search of something to watch instead of having to wait for streaming download etc. Easy to just pop a disk into a player and hit play.
but..actually things are available still, not on the isles. There is a computer that if you punch in what you are looking for (have to know the title in Japanese - they always change the name as is their movie tradition) it might be in the back, or they will order it for you and it will arrive in a few days.
They reduced the isles for spacing, but many videos are still able to still rent. for 99 to 350 yen a movie, can't beat it.