You mean Cobra Kai were supposed to be the real heroes?

I think the west may put a lot less emphasis on competing honorably or whatever. But playing fair is still morally better than not. E.g. people get viewed negatively for real cheating in pro sports (steroids, the "Cheatriots"). In some sports, however, the ref and what they catch is just part of the game.

The tolerance of cheating/bending-rules as a general cultural issue is very interesting though. Generally ethical behavior is sort of a luxury, which is harder to maintain as it goes against one's economic benefit. Japan seems like something of an outlier in that regard.