I've been in Japan for about 11 years now. That doesn't make me an authority on the Japanese camera market or anything but from what I have seen, the average camera enthusiast is shooting Canon or Nikon. I always approach professional camera men and women and ask about how they like video on their D800 or 5DMK3 or whatever and they all look kinda embarrassed and say, I haven't really gotten into video. When I go to the park there are a lot of old men with 1Ds and giant zooms shooting ducks and birds or kids playing with their parents whatever. I get the impression that the major chuck of the domestic market for these companies is probably not looking at the internet for reviews of lists of specs (I know many people are but probably not the majority), nor are they buying these cameras with the intention of doing something new. They are most likely in their 50s and 60s, with full-time positions in a company and nearing retirement and are reading camera magazines that are basically advertisements for these two companies and then going to the big electronics stores and buying them from salesmen who don't know anything about anything. My beef with Japan is that the older people have all the money and are the largest segment of the population so Japanese business and culture will cater more and more to what they want. This probably means less innovation. Japanese manufacturers are finding it harder to compete internationally so some retreat and focus on the domestic market and that means just playing on nostalgia. If they are confident that their domestic marketing campaigns will allow them flex brand power and sell inferior cameras for higher prices than the competition, they will continue to do it and find the logic of your argument incomprehensible. Like all paradigm shifts, people don't really change their beliefs. The older generation just eventually dies off and the new generation is left to choose between two alternatives and usually chooses different than the prior group because they don't have an emotional commitment to the past. I'm also willing to admit that I have absolutely no idea what I'm talking about, though.