I believe so. One argument against this is the cost to LEGO of manufacturing flops and then pulling them at a loss. However, I doubt there are significant initial manufacturing costs for new sets. I recently watched a LEGO documentary showcasing their manufacturing capabilities from the '70s and '80s, and I can only imagine they've improved and streamlined their processes since then. This suggests they can easily pivot when a set underperforms.
Looking at their annual reports, LEGO’s profit margins are extremely high, which likely accounts for marketing and markdown costs—the largest expenses for consumer products—revealing the low cost of manufacturing.
Regarding "Boom Goes Dynamite": this supports my theory that in the future, the main winners will be large sets primarily purchased by Gen X and older Gen Y consumers (5-10 years down the line).