You are right, the restaurant landscape in Japan has also been heavily influenced by modernized practices, so there are many exceptions. However, I find that many Japanese restaurants (even chains!) still adhere to these small menus and high-quality food, that is not as common in the United States.
On a separate note, buying fresh produce in the Japan is difficult to replicate in the U.S., because Japan is a much smaller island nation. Its cities are less sprawled out and buyers have quick access to produce and fish shipments. So it's not just differences in demand, but this accessibility to buying fresh ingredients also impacts how menus are constructed.