Same here.
If people actually took a trip to Japan, they'd probably realize it too.
There are also several anime/manga where the characters actually look "traditional Japanese" - So it isn't really all that skewed.
However, Japanese pop-culture is influenced by, and influences, society in general.
You go to any big city in Japan, and you'll see people with all kinds of hair- and eyecolours(dye and colour-contacts anyone?).
The large majority of Japanese I've met(and I've met a few), do not have small eyes by any means.
In fact, creating an anime/manga/game taking place in contemporary Japan, where all the characters had black hair, and dark eyes, would be unrealistic - Much in the same way it would be unrealistic for everbody in a cartoon set in Germany to have blond hair and blue eyes.
But as mentioned earlier, this is merely artistic freedom.
They have abnormally large eyes, and gravity defying neon-coloured hair for artistic reasons.
Besides, like bonneau_14 said, when did anime/manga characters ever look especially caucasian?





