From a recent news story on the conclave:
"Cardinal Roger Mahony of Los Angeles dismissed the possibility of a pope from such countries as France or Germany, where "practically nobody goes to church."
'What we are looking for is how to have the future pope be somebody who represents a dynamic part of the world,' Mahony said. "
I don't see a real connection. Lustiger, who comes from a part of the world "where practically nobody goes to church" (France) has managed to revitalize his diocese and reach out to the secularized Catholics.
Besides, the Church can't just write off Europe, which historically has been the "heartland" of the Church. No matter where the new Pope will come from, he has to pay attention to the loss of faith in Europe and do something to reverse that trend.