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I live in Tokyo, if you judge it on cultural variety it's a definite loser (although there is quite a bit of variety, just not comparable to a place like NYC or LA). The reason why I prefer the cuisine there has little to do with that, though. Rather, I've come to love the "taste" of the city, as in the general criteria by which people judge things as "delicious" is very different than what the average New Yorker or San Franciscan would land on.

The Japanese palette tends to favor much lighter flavors, less oily and rich foods than the American palette. People typically value the natural flavors of the ingredients, whereas when eating out in the USA you tend to get really sweet or fatty sauces that mask the flavor of the base ingredients, even at nice restaurants.

It's not that it's better or worse, it's just a different definition of what "delicious" is, and I happen to prefer the Japanese ideal.