The fuss seems to be mostly just the Japanese developers getting butthurt that people in the west got bored of their simplistic combat systems and random encounters, and came up with a term to differentiate the games that, at the time were entirely developed in Japan, that fit this style.

It's not the Japanese part that made them disliked more. It was the style of gameplay they offered. If you played one, you played them all, basically. They are barely RPGs, taking a more linear, choiceless approach to not only character creation, but dialogue options if even offered, are generally "yes/no" responses to questions that don't have any real impact.

It took the big developers of these games way too long to actually listen to fans' very valid criticisms and make changes to these systems, and they still very much keep so many more traditions that the term endures.