I found this Q&A very interesting.

Right now, Japan believes that other Asian games, and American games, aren’t as good as theirs. But across the world, American games are the best-selling and considered the most fun. But Japan’s gamers and game creators still won’t accept this. This is why Japan can’t win.
Wired: It’s heartbreaking to hear things like this, because I like Japanese games and don’t want them to go away.

Inafune: Chris, you say that you like Japanese games, but you don’t like them now, right? You like the old ones. You like the new ones sometimes, but you always liked the old ones, right? Say there’s a movie director you really like. You don’t like his new movies but you’ll go to see them anyway. It’s the same thing. Sometimes it’s a hit. But back in the day it was nothing but hits. Since you’re a fan you’ll watch them, but non-fans won’t see them.

You’re being too nice to Japanese games. You should be harsh when you feel the standards aren’t living up to what we had in the past. You should tell the truth about Japanese games not being what they used to be. Unless they get that criticism, Japanese game creators are just sitting on the glories of the past. They won’t get the message that the Western audience is turning its back on us.

Japanese people haven’t admitted that American games are more fun right now.
There was a Canadian guy who appeared in a documentary film and did a Q&A afterwards. And a Japanese person asked what he thought of Japanese games, and he said he thought they sucked. That’s what’s necessary.

It’s very severe, but very honest. Unless Japanese people feel embarrassed from the experience of getting harsh comments, saying [new games] could have been better is not an opinion they would take seriously. When they’re embarrassed and they feel obliged to change, it would make a difference.
Thinking back to how this game got a 4.0, I think that's what happened. Harsh criticism, and we're seeing a rebound. And what's more:

Wired: What does Japan do well?

Inafune: They’re very diligent. They work hard hours. They probably will work much more than Americans would. The problem is they’re not led in the right direction. When they’re not shown a direction, they just waste their energy on unnecessary things. There’s definitely a lack of leadership. If they’re led in the right direction, they will come up with really good work.
From what I've seen, Yoshi-P has the right idea on where this game should go. I think they're on the right track, and to hear the above quote from not just a Japanese, but Keiji Inafune, gives me a great deal of hope for 2.0.

But I also see it this way: We shouldn't shy away from being critical about something we feel strongly for (so long as it's constructive). That's what these forums are for. It can't all be hugs and kisses here.