I just think its neat. i totally saw what they were going for when i saw them in "Japanese style", but its not what i had in mind for Naruto. Someone should really do a Sociological study on it, if you are in college try to do a paper on it :)
I know originally anime got its look from Walt Disney (Astro Boy was copied from that style) so that's why we get the big round anime eyes... But yeah the hair color etc... has me stumped. i still think it could be just a reaction to such a homogeneous society, not only do they look similar (not in a racist way, I can tell Asians apart, they just have more similar features and dress, if you ever watch a video of a city subway at rush hour its 1000's of guys who look identical), but in Japan you are encouraged to act similar and keep low profile, conform, and blend in; so to make a character stand out you make him with bright yellow hair, have him have bad etiquette, eat a lot, and scream a lot. That's why the whole spikey hair thing (final fantasy) got popular there too, it really makes you stand out if your hair is standing up and blonde in a crowd of short black hair. But that's just a theory.