Europeans have only had decent exposure to RPGs sinc FFVII most companies stealth release their titles here the ones that are marketed like FF, DQ and Pokemon do very well. Translations were a huge hurdle back in the Snes days particularly for RPGs although the irony is that we got the Soulblazer trilogy published by Nintendo themselves after Enix didn't want to do a western release while America didn't even though the US only needs an English version which was available.
Pretty much, yeah. More advertising and more faith in the market means more sales which means more faith for developers which means more localisation efforts.
You don't get money for nothing, after all