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Honestly, I don't think servers would mean anything either. People just want them since the word server makes people think "performance upgrade" which is what NSO needs most.
And yes. For the most part, Japanese reception is far better than everywhere else. I know when the NES app was announced, I browsed Twitter and saw what the Japanese thought of it (since I found it stupid how everyone got the same games in a month, and only 3 at that while Wii U VC got a bunch weekly over in Japan) yet somehow they really liked it due to nostalgia, famicom controller, and online play.
My guess is that since Wii U/3DS VC games bombed VERY hard in Japan (if it wasn't a first party game, it barely charted and almost no miiverse posts were ever made for any community save for foreigners begging for it to come out over there) they went with the NSO/Classic model so that the people in Japan would be more willing to buy games in bulk rather than by piece, whereas over here VC sold a ton, with NA being the most successful region for that stuff. That also explains why all the likes on the JPN videos outpace the dislikes, while in the US videos they're universally panned. (JPN vids do get some dislikes from westerners looking at those vids, obviously)
As for the phone app, Again, I only know what I saw from the reactions to the NES app, but the idea of VC seemed to be well-liked over there due to how phones were common and how everyone had it at the ready, so it was easy to set up. I know that nobody seemed to be fond of HORI's setup or the one NES/SNES game a month deal they planned back in 2017, so that may be why those two things improved.
I have a feeling they know of western reception already, but why they don't just upgrade it so it works worldwide/the NES/SNES stuff is more frequent, IDK. Surely someone at NOA knows how annoying this service is when the only thing that works exceptionally well is the Cloud Save feature.