There's nothing wrong with RPG elements being inserted into other genres. Like seriously, the Road to the Show is the best mode in a sports game ever. Kingdom Hearts is one of my favorite series. Just trying to pin down an accurate way of identifying the term. You can go extremely classical, and then a lot of games don't qualify as RPGs, and you can go very loose, and then really... most games quality as RPGs. It's not a bad thing, just kind of hard to say what belongs on the list.
As for western RPG versus JRPG, it's not a preference for one specific style as much as it is storytelling. To me, for RPGs, gameplay isn't the biggest issue, as much as storytelling. If they combine well, you get a terrific game. Unfortunately, few Western RPGs end up that way. I mean, what's the king of the hill, Mass Affect? It's an interesting enough plot by video game and even RPG standards, but the storytelling was never that great. None of the characters has personalities or emotions. I even remember rescuing some chick from her mother who was trying to kill her, and she just talks about it matter of factly right as it's happening.
The American mentality is to create great gameplay with a story to drive the purpose behind it, and the Japanese mentality seem to be to create an interesting story and create interesting enough gameplay so you don't pass out. Unfortunately Japanese games love to add stupid kiddy bullshit. Can only take so much of that.