Why do all "JAPANESE" anime characters (Specifically Naruto) look white?

[Prophet]

Since this inquiry can't easily be answered locally, i'll try internet forum route.

Before i get to the essence of this topic, let me elaborate first. I've never really been into anime, but my little brother has been begging me to get into it, so I tried getting into naruto, since it was so popular. Just to see WHY exactly it was popular.

After the first ten episodes i realized something that made no sense.... there were asian people, in an asian environment, speaking Japanese...... that look COMPLETELY white. There's no way that you can convince me that a blonde haired, blue-eyed pale kid with an orange track suit is in any way shape or form ASIAN.

So i was thinking okay, maybe this is an anime that has American people in it. Sequentially, my brother suggested that i watch this show called Death Note, which ALSO took place in japan. So i was like ok cool. Now before i bash it i must say that the Shinigami looked EXTREMELY cool, but, once again, the show looked like an American cartoon with caucasian characters, and Japanese voice actors. Almost like a joke. I saw the first episode, but i didn't progress any further.

I don't have any prior knowledge as to how Anime looked in the olden days, since i was busy studying my ass off, so i didn't know if the characters have always looked like this or not, but either way.... WHY? Do Japanese people hate themselves, and how they look? Does this in anyway tie in to the plastic surgeries they have to look like white westerners? They proudly display their culture in the shows (that i've seen, which were naruto and death note)... but the characters don't even look SLIGHTY like Japanese people. I'd expect to delve into JAPANESE anime to see cool JAPANESE anime characters do COOL things.... but all i'm seeing is supposedly Japanese characters that look like white kids, and random boobs flying around anywhere.

Am i missing something? Can someone please clear this up for me?

- Thanks.