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Inafune can go either way, really. He's seemed to have hated everything about the Japanese Video Game industry since he was kicked out of Capcom, but I really don't know if that's the whole reason for his thinking.

He brings up some good points. Japanese developers really do need to open and cater to a bigger market than rather being on some type of high-horse. Nintendo, although not much of a Japanese dev by today's standards (I guess), can show that games from Japan don't have to automatically convert to "niche" status in America. (I don't think that the Japanese market should totally follow the Western Market, though. This would destroy diversity no matter how you look at it.