I don't think western rpgs have been lacking on the combat front, but then again it depends of which kind of rpgs we're talking about.
On the action rpg end : absolutely not. There's Darksiders ip, Fenyx Rising, Valhalla, God of War's recent iterations, Horizon ip (pretty much best open world combat and its not even close), Bastion, Tunik, Lord of Shadows 2 was kinda decent ! and so and so forth. Plus all of the amazing looters we got since the beginning of the genre (Titan Quest, Diablo, Torchlight, Grim Dawn, PoE, Warframe) We are absolutely lacking in games akin to Dragon's Dogma, Monster Hunter and whatnot and I'm hoping that Wayfarer will be a solid attempt it (more so than Dauntless lol)
Case can be made about Souls games but its the same shit since Demon's Souls, just with harder bosses and now attack delays (adopted by God of War ragnarok on top of that)
On the turn by turn rpg end : We're pretty much lacking on that end. What's interesting is that most good to awesome turn by turn rpgs as of late have been card based roguelites so it makes it kinda confusing (Banners of Ruin / Slay the Spire / Hearthstone). Can put Original Sin in there, 2 literally being in a class of its own
On the tactical rpg end : We have a couple of these which are very good combat wise (Into the breach, Fell Seal, some others) and some hybrid games borrowing the form yet belonging more to the strategy games (Xcom, Jagged Alliance etc) but I don't think we're rivaling in the market there yet
On the first person / dungeon rpg end : way too many good games. Ultima saga, eye of the beholder, lands of lore, Arx Fatalis, Bethesda pre oblivion, Legend of Grimrock ... like are you kidding me ? But what makes the combat good here, particularly in dungeon rpgs is the amount of systems you have to juggle with in real time.
Traditionally dungeon rpgs are on the more demanding side because there's old school systems like hit chance and whatnot AND you gotta manage cooldowns between multiple characters in real time by clicking everywhere on the UI. But once it clicks its a festival of good stuff. Plus, I mean Grimrock, come on.
On the crpg end : I personally think thats where most of the best combat systems from the west are at. Because it manages to combine the dice rolls aspects of pen and paper + having to position and toy with actual skills & builds where everything matters, while giving extremely satisfying feedback from it all
Wrath of the righteous specifically might take a while to get started if you dont play alligned with Evil as a starting character but holy shit from mid to end game the combat is straight up demented. Pillars of Eternity 2 literally enhanced in every single way the gambit system found in FF XII / Dragon Age Origins, while also giving the opportunity to play turn based or as a classic CRPG and it has an amazing combat system with plenty of feedback / elements to toy with. Skill checks in classic Fallout, Planescape, and recently Disco also pretty much never get old. And we have all the D&D based stuff like Neverwinter, ToEE etc etc
And ultimately that's where the question lies in. What makes good combat for people enjoying specific kind of rpgs.
The west doesn't have anything matching Persona or Digimon in the turn by turn end, also most of our 3rd person Fantasy inspired rpgs suck in that. We have nothing akin to Dragon's Dogma, and to start making compelling combat in open world arpgs we pretty much needed Arkham City to be released for Assassin's Creed (between others), to adopt the tenets of it. Later on, Horizon
We have some really good yet clunky ass combat in eurojank rpgs, Piranha Bytes games being the flagship of that category on their own, but really what we're lacking is that triple A classic awesome fantasy rpg with an actual good combat, and a stupid high production value. I dont think these will be done anytime soon given the popularity of well done ATB based combat systems (which really just are borrowing the cooldown based system of Crpgs)
Dark Fantasy is covered by Darksiders. But yeah classic fantasy good and kinda grounded combat hasn't been done since Dragon Age Origins and its been a while I reckon.