It's happening for, erm, at least three years already, I believe. It started around the time Killzone Mercenary came out and still pretty much untrue, but we live in the age of hatred so everyone outside the actual vita fanbase gets a kick out of bashing it, which is nothing new. It is indeed long "dead" in regards of big mainstream AAA titles but that doesn't have anything to do with us perverts who play weird weeaboo games.
And... I'm not quite sure why we are talking about KB Otome here? Japanese publishers usually go with someone like Aksys for that kind of games to print physical copies and have a decent marketing but Aksys are a bit busy with lots of other vita otomes atm. Plus it's pretty much the first try for Spike Chunsoft to publish something completely on their own in the west, it's understandable why they wouldn't use something like KBO for their debut.