Everyone is xenophobic, I live in one of the most visited cities in America in terms of tourists, and tourists get shit talked all the damn time. Japan isn't special in this regard.

- When was the last time you tried to communicate with them in Japanese?
- When was the last time they tried to communicate with you in English?

Probably they last tried to communicate to you in English.

Regional servers also won't help for anything but latency issues, and even then they'd have to set up servers in different countries for that to work. Spanish is spoken a lot even in the US. Canada isn't all English; they speak French as well. Hell, there's a good population of French-Canadians on Selbina already and it isn't unusual to see French in /say or /shout.

EU? Only a handful of countries in EU speak English natively. Everyone else speaks French, German, Spanish, Polish, etc. etc. Eastern EU has so many different languages that it would be idiotic to shove them all into their own regional server and expect them to communicate effectively.

As far as an Asian regional server goes, would their official language be Mandarin? They have way more native and total speakers than any other Asian language. No, their unofficial "official" language would be whatever the most people spoke. Same as it is right now.