There's actually no problem however with the "country of origin" label, because "anime" isn't saying any
specific style or content: it's just saying "animation made in Japan". Check what large, authoritative database sites consider anime, and it covers every possible art style. It includes CGI with
realistic-looking human characters, CGI with
Pixar-type characters, cartoons that look like they were
made by Disney, cartoons that
look like Invader Zim, cartoons with
any possible drawing style you can imagine. No matter
what they look like, if they were made in Japan, they're called anime. If there's any ambiguity, it comes down to the language it was released in. So, something made in Japan purely for an American market isn't listed on anime sites whereas something released in both Japan and America at the same time would be.
This is the logical flaw with the "but defining art as coming from one place makes no sense" argument. anime as a term
isn't in fact making any stylistic assumptions about which shows qualify. It merely
means "cartoon from Japan". It's more in line with a term like "Americana" for artifacts related to America. Sure, you could fabricate your
own Americana that looks exactly like it could be the real deal, but it would not in fact
be Americana because being
from America is in fact the entire definition of Americana.
The "anime is a style" thing is actually something I have a conceptual problem with much more than the "country of origin" thing. If anime is a style, then anything that breaks out of the mold must be "not anime". It's
prescriptive. It's
restrictive. It means we would need to start telling the
Japanese that when (not if) they deviate too far from "anime norms" then they've betrayed this sanitized
western notion of "true anime". Well, fuck that. if we get to that point where anime becomes one
definable thing where if you don't have spiky-haired kids with superpowers battling monsters/demons/baddies in a serialized plot then it's not "proper anime" then fuck. that. shit. Those aren't even the anime I like. People trying to define a "proper" "anime style" almost always want to use something like Dragonball / Pokemon / Sailor Moon / Yu-Gi-Oh as the basic template. They're not talking Mushishi or Kino's Journey here. If Mushishi had been American-made then the "anime is a style" people would probably say it
isn't an anime: It's completely episodic. It doesn't have colorful characters with crazy hair color and big eyes. There are no battles, or bad guys to fight. Or, the anime "Bartender": an episodic show where different customers come into the bar, the bartender makes a cocktail that symbolizes their life problem, and it explains the history of the drink as well as how to make it. If it
wasn't from Japan, would we even think to call that an anime? It clearly wouldn't be a "true anime" according to the people who come up with any of these style-based rules for what count as anime, because I've never heard one of those sets of rules that could even remotely fit something like Bartender.
however, the real point is that the people calling to let
some cartoons be labeled as anime
specifically don't want to just let everything be called anime if people want to call it anime. The actual motive is to make a distinction between "cartoon" and "anime" made in the west. The goal is to "up market" some shows that those people like and divorce them from the "cartoon" label, because cartoon is seen as having lesser connotations, and "anime" is a trendy term.
So the goal is in fact to draw a line in the sand between shows like The Simpsons, MLP as "cartoons" and Avatar TLA, as "anime", usually going on with some high-brow statements such as that "anime has a True Plot that's so much more than a cartoon". It is in fact a bit of a hipster thing because some people feel more sophisticated saying they watch "anime" rather than a "cartoon", but they use a
very selective set of "proper anime traits" that seems to divorce this "conceptually an anime" stuff from all the shitty tropes that actual Japanese anime are full of, as well as the vast number of episodic, slice of life and other styles of anime that aren't covered in a one-size-fits-all "style" set of rules.
BTW: If the goal is to up-market American cartoons then guess what, the best way is not in fact to start claiming the good ones are "anime", it's to highlight the good ones as good examples of American cartoons.