Yes, as far as diesel model locomotive superdetailing (like separate grabs, etc.) is concerned, Kato has not changed much over the years. I suspect Kato has different target audience than let's say Scale Trains with their River Counter models.
Every company has their niche. I'm sure they'll survive and thrive (especially with their passenger trains). I also have no fear of Kato abandoning their North American market due to lack of sales.
Kato has also made large leaps in detailing and design of certain models. Perfect example is the Japanese C50 locomotive featured on the dust jacket of Kato's 50-anniversary book. I wish the entire contents of that book was available in English, but even with just photos alone with the English translation of the captions it is very interesting reading.
First photo is the original model, and then is the current (3rd generation) model of the same loco. First model (from 1960s) has a rather sparse level of details. The current model has very low friction smooth mechanism with a coreless motor.
Yes, I'm a big fan of Kato.