Lee Ratner rebuts, noting that most of the audience (at least the vocal) part *perceived* the characters as Asianish, and that's what really matters. Also notes the anime influence and the odd Caucasianing of Japanese in anime; in a way, Avatar's characters look more Asian than many anime characters do. (Part of this may be the whole "big round eyes to look cute and show expression more dramatically" thing. Or, if you're going to slap green and purple hair down everywhere, why get picky about epicanthic folds?)
Juuni Kokki/the Twelve Kingdoms takes place in a fantasy world which does have some connection to Earth, but people show up (explicitly, in text, not just some animation convention) in almost every combination of skin and eye color. Non-hereditary too, due to divine changes in biology. There's no races, just scrambling everywhere, though blonde hair is unique to the kirin. (I've imagined fic about some blonde American soldier who gets swept off Okinawa and initially mistaken for the human form of a kirin. Soldier is extra ironic due to the pacifist nature of the kirin.)
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Juuni Kokki/the Twelve Kingdoms takes place in a fantasy world which does have some connection to Earth, but people show up (explicitly, in text, not just some animation convention) in almost every combination of skin and eye color. Non-hereditary too, due to divine changes in biology. There's no races, just scrambling everywhere, though blonde hair is unique to the kirin. (I've imagined fic about some blonde American soldier who gets swept off Okinawa and initially mistaken for the human form of a kirin. Soldier is extra ironic due to the pacifist nature of the kirin.)