Yeah, I hope the next time there's a thread about something that Blow did, people can think back on this thread and notice the difference between the two instead of running on about ZOMG PRETENTIOUS.
There's a lot of factors that go into this. When people talk about development problems in Japan, what they mean is that Japanese studios making AAA games haven't adopted the development methodologies, technological tools, and organizational structures that are standard practice at Western studios. This is really a direct result of studios trying to take a model that worked (and still works) for small-scale projects and scale it up to a scope it can't handle, while ignoring (purposely or through lack of knowledge) the fact that it's more or less a solved problem.
I definitely think it's a trend that's worthy of discussion, but given that statements about this are often wrapped tight in racist xenophobia and ignore the vast majority of the market (like, say, the incredibly fertile handheld market in which Japanese developers have continued to excel... or the developers like Nintendo and From who have had major Western success... or the publishers like Capcom who have aggressively moved to improve their structure and technological base...) it's very hard to talk about in a sensible way.