I wouldn't say that Japan rejects foreign games, just that they really don't want to change up what has been done for so long. We can easily see this with Dragon Quest, the most popular JRPG in Japan and it has been mostly the same formula all this time, well until X and kind of IX . (I have only played a few DQ games, so if I missed something major feel free to point out how much of an idiot I am.)
Which isn't necessarily a bad thing imo, I don't want an established franchise to become unrecognizable, if they want to really change it up then they should make a spin off or a brand new IP for it. :/
I do think that FF could become more western friendly without losing what it is(it helps that individual FF games change up their formula more than the average JRPG series) and that FFXII was a step in the right direction if they wanted to do that.
Square Enix does seem like they want to expand their audience now that they are the publisher for Deus Ex as well as the new Tomb Raider and new Hitman, but I honestly have no clue how much of an influence the acquisition of Eidos Interactive might have on SE, the business side of things is beyond me.
Alternately, maybe the issue is that we all grew up so the newer FFs just don't have that charm they had when we were younger and more open to new things. Just a thought.
FF X was the first FF game I owned, and I'm not too fond of it. Chrono Trigger, FF IV(I played DS), and FF IX are my favorite Square games. Nostalgia might not have much influence for me with FF, but I wouldn't be surprised if this was the case for many people.