In Japan you also usually have to sing in front of the entire bar/snack unless, of course, you go to a private karaoke box that you rent with friends. ANd when you are out with friends EVERYONE sings regardless of ability and no one will ever be booed as it is considered rude.
The main difference between American style Karaoke and Japanese style is that in America people boo you if you can't hold a tune and that really sucks as they do not understand the meaning of true karaoke.
With Japanese karaoke you get up and sing a tune you like. Whether you can hold a tune or not is not important. What's important is that you get up and sing and let your true feelings out and "let your hair down" so to speak and the audience will kindly applaud you after every verse regardless of your ability as you had the guts to get up sing.
In America (and maybe other countries, I don't know) they act like they are Simon Cowel and voting for the next American Idol without giving any respect to the feelings and true meaning of karaoke. In a sense, it is quite cruel and I would never put myself up to that sort of ridicule.
In Japan no one cares one iota whether you can sing or not. It's the comraderie and friendship that is shared and most important. In America, they judge you on you singing ability and nothing else. If you suck, they will surely let you know. In America they can't even pronounce it right. They call it "kary okee" instead of karaoke.
Yes, America needs "karaoke boxes" as outsiders are too cruel. Maybe you can start the business in Minnesota and make a fortune.
Good post.