I disagree. I think that plot and character remain as important in fantasy as most other novel-dependant genres, but that setting takes on an increased role, particularly for fantastic worlds, environs, cultures, etc. This is where a lot of writers stumble. Many take so much time and put so much effort in creating a world that they lose their characters and plots (and, more importantly, in my mind, the human condition) in their tales.
Then there are those who make an equally heinous mistake: those who don't flesh out their worlds enough on the front end, thereby never effectively allowing more sophisticated readers to suspend their disbelief and become immersed in the story. Terry Goodkind is an excellent example of this as he's apparently createed stuff for his world as he's written more books... and most of it isn't particularly original.
I think most writers who fail in the latter error, poor world design, are also lousy character writers.