It's...actually not always that, either.
A lot of productions are just direct translations with the necessary liberties taken to ensure that anything may be lost in translation remains conveyed. I'm less likely to find an American content with portions of its story edited because they might offend a JP audience (not counting overt censorship).
I've personally seen the process in my line of work, having run Localization QA stuff in games, and it varies.
I think you're overestimating this, and it's still not necessarily localization.
Such things are done seldomly and on an as-needed basis, but most translations never need to resort to this.
I'd prefer to have the game presented in such a way that was more 'direct' in its translation from Japanese, like a second language option so that way all the dialog was directly in-line with cutscenes, text and characterization was more 'direct', etc. I see no reason why it wouldn't be feasible, since it wouldn't be much to just go in. It wouldn't even be much to test, either.
What does any of that have to do with depictions of fiction for the sake of comedy? Murder, assault, etc. are also just as illegal yet are shown in media all the same. You're seriously trying to draw parallels between real-life and fantasy/fictional depictions in fallacious and unworkable ways, a common talking point employed by proponents of censorship/suppression of 'problematic' elements in fiction. If that type of critique comes off as critiquing 'woke' approaches, it's not. I've never even commentated on 'wokeness' in JP-EN translations of things, but it's a genuine problem when anyone tries to inject politics into the adaptation of foreign media. Such things are NOT faithful to the original product and such revisions should be and are rightfully scorned at.
In any cas iet feels to me like you're responding to an argument that I never made by invoking media effects on Japanese culture and humor. These types of tropes and depictions in media are not to blame for incidents of assault or violations of privacy - people know the difference between right and wrong and how to appropriately contexualize these things from one another. It also feels like you're painting Japanese culture as largely insensitive, when in reality these types of social issues you're bringing are symptomatic of a larger set of problems far beyond the scope of this discussion.
As for cultural differences and media effects, I think there's a very clear difference between a fictional comedy trope seen in media vs. a real-life example of a sexual predator or incidents of real-world sexual assault. I don't think most people in Japan would take issue with this, and more and more people have begun to speak out and make corrections where they matter. One is a harmless joke in a video game and is received that way by their larger public, while the other is a real-life crime. That's the crux of my "me not getting why people are upset" statements, because once you learn to differentiate between the two, things genuinely are much better.
That doesn't necessarily mean that the divorce from reality and fiction is less pervasive, as you think it does. I know people who were also victimized by this and they're neutral to it, as are the broader Japanese public as previously stated, otherwise these tropes wouldn't be as entertaining. I've seen what Japanese reviewers say about things, and many of them still seem to be as critical as, if not equally, as the West are when voicing their opinions on things they don't like, and companies tend to respond to feedback all the same.
As stated before, people can and do engage with such material irrespective of what happened to them in real-life. You keep overstating the discomfort associated with Haurchefant's JP characterization, when it's very clear to anyone who'd seen it that it's really minimal, or a non-issue to veteran consumers of Japanese content. I genuinely don't see why it should matter anyway since it's a joke. People shouldn't have their insecurities pandered to and sated because that only tells them that they're right for being offended, when such things shouldn't matter at all.
I use LINE sometimes... and it was to illustrate how the character is depicted in external media. If they were to license depictions of the character for external use (such as merchandising or spin-off media) it's highly unlikely that they'd localize even that just to keep it consistent with the inconsistent characterization situation (further illustrating why it was a mistake).
I wasn't talking about that.
It was the debacle with Funimation (who is now merged with Crunchyroll), my mistake. They changed whole parts of a character's dialog to make certain depictions seem political when, in the original script, they weren't. The Dragon Maid fiasco was a mini-culture war, in a way.