The nice Jap Strats play and sound better than American. I've only played one once, but I loved it. When I did a comparison with an American Strat...well, yeah. It wasn't great. The fret job wasn't as good and there was some buzzing. The neck just didn't feel as good as the Japanese one did.
So yeah, the ones with Made in Japan on the neck joint are better than American.
"American = quality model. Better wood selection, better electronics, better everything. That doesn't make the Japanese strat bad, just the american model is BETTER."
With hand made guitars, yes. But with factory built guitars that isn't always the case, they're kinda hit and miss.
The bodies of some USA Stratocasters (natural finish, flamed and quilted maple tops) are covered in a thin veneer. This deadens the tone slightly. Japanese Strats have a "Photo-Flame" which is self explanitory. The "photo-flame" is so thin and needs so little adhesive that is doesn't affect the tone. On other natural finish guitars it's all real wood.
There's the "swimming pool" routing method USA Strats have. I don't like it a bit. Where as the Japanese Strats have 3 cavities.
The electronics on USA Strats are better but that's about it. But really, electronics are no biggie. Those can be replaced.
That's my opinion. I'm guessing the reason why
Fender Japan doesn't export any more is because Fender was losing sales on American Strats.