Inafune was spot on. An article linked on that one
talked about the reasons why the Japanese have diverged so much in tastes from us. Thankfully Yoshi-P has a good vision for the game, but the industry as a whole is focusing too much on its domestic market while the global market is increasingly integrated and their own domestic economy has been dwindling for 20 years now. He referred to all western devs as American, but the fact is many titles are produced by teams all over the western world now.
SE has also had these symptoms of myopia, but as I have said since before its release, it is still trying to innovate in some games at least. FFXIII's battle system may be controversial among the hardcore nostalgia fans, but it's picked out consistently as one of the best points of that game in reviews. I've played every mainline FF and most of the side games, and I can say without exaggeration that FFXIII and especially FFXIII-2 had by far the hardest boss fights for me, especially the super-bosses, with the possible exception of FFIX's Ozma. Having to run from a save point doesn't make the boss any harder, just more tedious to kill.
I also found the paradigm system much more engaging in all battles, including the 99% that aren't boss fights, specifically because it's something that I can't just mash attack to clear. My characters are min-maxed to the limit with the best gear in FFXIII-2, but they will still get annihilated by a random spawn behemoth in the northwest of the final dungeon unless I'm pretty careful. I never had that happen with the other games. FFXII was one of my favorites as well since it had an epic story and an innovative, if a bit overcomplicated, gambit system to streamline the boring bits while adding interesting strategy to boss fights.
Compare this to many other games this generation that have held onto the same combat system as their predecessors and have the same trite stories and almost all have failed to do well. For all that Sakaguchi has done for Square and the industry, Mistwalker hasn't made much of any impact sales wise, and last I heard they're just working on an iPhone game. Not everything needs to be a shooter, which is something western devs could stand to learn, but I think gamers have voted with their dollars that they don't want the same JRPG they got 10 years ago with prettier graphics, either.