I think he declined after his fight against Kenshiro and the three wars with Vince Paras in his last fight he lost quite clearly to Anthony Olascuaga. He has a worse defense, less power and less speed than in his prime. Do you still think he can become world champion at 112 lbs? Does he have a chance against another world champion, for example, the IBF against Masamichi Yabuki? Or his career is over for have a world belt at 112 lbs ?
With champions being what they are there is a reasonable chance a belt holder will come along whom Kyoguchi could beat. That being said, he will never again be the best fighter in the world at his weight class.