Second: It is my understanding that many Japanese creators view
the creation of fanworks (doujin, cosplay costumes, etc.) as a sign
of honor; these works are symbols of the fans fondness for the
Creators work.

This seems to pop up from time to time, and almost always under
similar circumstances. Am I the only one who would like to see an
actual quote/article/interview/link where said view is expressed, and
possibly a list of who expresses it?
Or is it just a case of "things are much better in Japan", combined
with misunderstanding/lack of knowledge of the finer points of
Japanese copyright law?

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