There seems to be a real divide in the Gundam fanbase.
Fans in Japan like over the top, new types performing magical feats Gundam.
Fans here seem to want a more reserved Gundam.
I don't think this is the case. There is no question that "Gundam" as an umbrella brand has weakened over the years, especially in TV ratings, but that simply means the younger and more casual audience hasn't found something to latch on to. The last time a new non-UC Gundam managed to break out was with Gundam SEED, and that was over 10 years ago.
Meanwhile, the UC stuff remain very popular, with Unicorn and Origin getting solid sales. Unfortunately this will not translate to TV success because they aren't very good at being gateway entries for people who aren't already fans, and the older UC fans who are driving the success of these OVAs tend to prefer quality over quantity - less releases but higher production values. Works well with movies and OVA, not so well with TV shows.
So this is less of a "Japanese fans vs Western fans" thing, and more of just the lack of a successful new non-UC gateway series to capture a new audience.