Your point was Japanese are earning a profit how dare they earn a profit in their business. And you conveniently ignored the Chinese and Koreans are earning more profit or at least as much as them with their overpriced cars.
Toyota cars are not stripped. Half a decade or so ago maybe. Their latest offering is Cross and it has full adas not really stripped down. Only HRV was.
Sure this change is brought by more competition and Chinese, Koreans, etc are a welcome addition.
But your point is how dare Toyota earn a profit. They should give out cars on charity while others are allowed to earn profit ?