I'm interested in seeing you expand these points more. Specifically, what you think the game should reward you with for playing well, what elements of '21st century game design' you want to see, and, the inpact Western developers making these games could have.
I mean this sincerely, too.
It's not something simple I can answer - a simple analogy would be what if FPS games had become hugely popular in Japan*, what sort of whacky improvements or gameplay explorations would we have seen by now? Because they aren't, we don't. Same story on this side of the ocean with shooters.
I mean what if FPS games integrated experience points and levels? Pff, that could never work.
Oddly a surprisingly good analogue are roguelike games, which have seen something of a renaissance in the last few years. In theory, roguelikes are brutally difficult and you only have one life to get through the entire game, which isn't conceptually far off from attempting a 1cc clear of a difficult shooter.
They're not universally popular, but gameplay elements from them have been picked up by other genres, and several of the most popular have smoothed over some of the rougher edges of permadeath gameplay with a variety of methods - and Diablo, of course, is the ultimate inheritor of basic roguelike gameplay that became hugely popular - yet I certainly can't think of any remotely similar match for shooters, unless you just want to argue that fps games are that evolution.
But in quite a few years of following japans shooter scene, I never saw that sort of evolution (with rare exceptions, Senko no Ronde was pretty sweet... but uh, go google image search that for yet another example of god damnit japan - and that was actually done in sprite based 2d many years before!), and I gradually lost interest in the genre.
It's not so much 'here's a silver bullet that will fix the genre' as 'we need continued developer interest to inject fresh ideas and experimentation into the genre'. Even when it's a dedicated niche of developers (roguelikes), you can still see healthy innovation over a long enough stretch of time, but I wasn't seeing that in shooters.
I suppose its possible there are a bunch of amazingly awesome shooters that I've missed in the last few years for lack of interest, but if there are, I haven't heard anyone shouting their praises from the rooftops.
And frankly, it's hard to create ardent new fans in the west when the offerings are screens filled with buckets of bullets and little girls flashing their panties at you. The first is going to turn off a good chunk of potential players straight away (this is too hard/stupid/what the hell is going on), the second is going to turn away some more (this is creepy/weird/what the hell is going on).
Even the
names are a problem. 'Hey dude, check out Cave Story' is easier to absorb than 'Hey dude, check out Mushihimesama Futari Black Label!' (I guess you could point them to Bug Panic :V Just don't google image search Mushi either!)
(*Japan not being used as a synonym for 'the east' here, I think I've kept a keener eye on gaming developments out of Korea than Japan recently, for a variety of reasons)