And for the record... no lol
Just no.
I don't need to insult people to prove my point, at least when it's not warranted (i.e. being insulted first).
I think your overall point about being sensitive over it feeling like harassment is probably the most valid response, but still falls short of the broader content being mere fiction, coupled with the intentions of the creators being made clear of being a joke, and I stand by my previous statements about people 'growing a spine'. I think going out of their way to accommodate that sensitivity and discomfort is the wrong approach to take if it's the 'true vision' of the product, because in later years or in other products, they're going to go with the characterization of the JP script because that's the true version. Even the LINE Messenger icons of Haurchefant are representative of his Japanese characterization.
I named off 4Kids because they're a textbook case of localization that a lot of people seem to forget about, and yes, they have. We literally watched entire anime and manga be butchered by Crunchyroll. I remember Dragon Maid, I literally cancelled my CR sub because of all of their craziness.
As for the game 'being Japanese', it's about the title (if not franchise) as a whole being a product of Japanese writers and artists, shaped by the culture which they existed in, their liberal use of a variety of Western fantasy and mythological characters, tropes, etc. The game itself has made its Japanese character evident even beyond that, like the celebrating of Japanese holidays, and partnering with Japanese properties to do cross-over events with, etc.
With Western references and jokes, I..genuinely don't like it. I begrudgingly tolerate it because it's a joke in the JP version as well, and I assume that that's fine, though I'd prefer to just see the JP version. I personally just think the 'Channel Awesome' approach of constantly inserting jokes or references to things that exist in the broader culture is a lame approach, because you can't always guarantee that it'll amuse more than it annoys, but it also kills opportunity for something actually intriguing or conducive to immersed engagement, which it probably won't be because most references aren't written with that dual-purpose in mind for the sake of those who don't get it or pick up on that it's a reference.
That point stands even with respect to JP-centric jokes or references, but I'd still like to see those translated over.