That sounds pretty horrible. Is it at least impossible to just hack away when the monsters are not raging? "Challenging combat, sit back and wait, repeat" is a lot better than "mash button, sit back and wait, repeat".
Though I can't say for certainty this does apply to the console-based MH3s, but the general rule of the series is Button Mashing = Instant Death. Essentially precise timing matters when attacking, as there's something of a delay between button press & attack connecting (Basically put, Big Freakin' Sword actually swings like a big freakin' sword unlike most games) which does leave you vulnerable for a second or two (depending on the weapon of choice that is). So, attacking with wild abandon will usually get you killed, while stepping back, patiently looking for that opening and taking advantage of it is what will keep you alive.
Also, keep in mind that healing potions & other status buffs do have a 3-5 second animation where you stand still, meaning trying to heal yourself next to a monster is a no-no as well. I've noticed this it usually what makes or breaks the game for most people (other than the PSP's Finger Hook control scheme), so it's best to mention that right away so you can decide if that's your game or not.
Maybe one day they'll release the game in english on a decent platform. The PSP games are great and added tons of stuff, but fuck if I can stand using those controls and staring at that tiny ass screen for so long.
Question, have you given the Remote Joy plugin a shot by chance? I do recall that it'll let you export the video to a PC as your playing (as I know the video cables for TV aren't cheap), and I think there's also an option somewhere to use an external controller to play as well, though I can't remember if it's from another plugin or a hardware hack.
Oh, as for PC games I do remember there is/was an MMO (not sure if it's active still) that was also Japan only for a while, but then Korean servers popped up. The interesting point about that is that a lot of US/Europe based fans did manage to find a way to play on those servers, which essentially came down to identity theft because it requires a Korean social insurance number (or whatever it's referred to as there) to play, with many justifying the stealing of one because they had a 'Right' to play. Oh Internet...
Still, from what I heard of it, it sounds like it translated very well to an instance based MMO, guessing that they felt there's just not enough of a fanbase in the West to justify the cost of bringing it over.