Bundy, the Gracies were/are given a lot of respect in America because when UFC first came out, few in America were even aware of Ju-jitsu let alone, Brazilian Vale Tudo. When Royce would enter the ring against much bigger, meaner looking apponents and take them down with an arm bar or a knee bar, the American audiences went nuts.
The Japanese, having been into Ju-jitsu a lot longer than the Brazilians were already quite aware of this fighting style. From what I understand there has been a long standing rivalry between practitioners of the two styles of fighting.
The derision the Japanese heap on the Gracies stems from the over-the-top arrogance of the Gracies in the general. It doesn't fly very well in Japan.
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