I find the strict geographical definitions to be pointless. If you describe a game as a JRPG in the sense of "an RPG made in Japan" then you've not actually said anything about the game that wouldn't have been said by simply calling it an RPG. If you make the distinction based on the avatars position to the story, like Extra Credits did, then at least that tells you something about the game you're describing.
That said, you can define terms like that however you like, so long as you're clear about what you mean. There are no right or wrong definitions. The silly bit comes in when someone says something like "game A is a JRPG, because JRPG means X" and someone responds with "no, game A is a WRPG, because JRPG means Y". Clearly A is a JRPG by definition X and a WRPG by definition Y; there's no need to be polemical about it.
That said, you can define terms like that however you like, so long as you're clear about what you mean. There are no right or wrong definitions. The silly bit comes in when someone says something like "game A is a JRPG, because JRPG means X" and someone responds with "no, game A is a WRPG, because JRPG means Y". Clearly A is a JRPG by definition X and a WRPG by definition Y; there's no need to be polemical about it.