The big problem is that is what we domainers call them. The Chinese I believe just call them "Chinese Domains" whilst the Japanese call them "Japanese Domains".
By and large the impact on the domestic domaining scenes in both countries are going to be so great the full International perspective stands to be largely ingored. Even in the west I think we should regard IDN as fairly temporary terminology. I think as the infrastructure develops and IDN are increasingly accepted I believe that the terminology will largely be dropped. Punycode is just one more layer of encodement on top of thick strata of encodement. The general public will not be interested in the technical details of how these things work, they just accept them and use as and when they are applicable to their needs.