The 'there are also crappy games made in the west' argument doesn't even need to be stated. At all. Because no one is arguing that there aren't bad games here. We're all completely aware. The western industry seems to be doing better than the japanese industry though, so the question is why? Inafune tried giving his answer.
I think the core issue keeps getting muddled by branching topics and side issues. I think it sounds pretty childish of them to say 'oh yeah well western games suck too' as an argument to constructive criticism.
But the only criticism ignorant people aim at Japanese gaming industry is that they aren't making good games or "keeping up" with the western developers, when, in fact, Japanese have made some of the best shooters (Vanquish, Binary Domain), best platformers (Super Mario Galaxy 2 & such), most entertaining RPGs (The World Ends With You, Demon's & Dark Souls, Nier, Kingdom Hearts: Birth By Sleep, Xenoblade), THE BEST action games (Bayonetta, Devil May Cry 4), great music games (Rhythm Paradise, Ouendan, Theatrhythm, Rhythm Thief), great multiplayer games (Monster Hunter series, Anarchy Reigns), fun racing games (Gran Turismo 5, Outrun). addictive loot-whore games (Phantasy Star Portable 2), awesome fighting games (BlazBlue, MvsC3), inventive puzzle games (Catherine, Pushmo), entertaining strategy games (Little King's Story) and shmups (Sin & Punishment 2, Cave's games) within the last few years, many which exceed their western counterparts.
They aren't behind. At all. They have issues on some areas, but let's not pretend like that isn't the case with developers all over the world. Western devs perhaps suffer from other kinds of problems, but they aren't on that healthy of a basis either, given how many devs have had to shut down even within the last year or two, let alone within the last 5 years.