Apparently Japan, upon being inundated by tourists seeing sensationalised Hollywood interpretations of Japanese foods, including raw beef and eating live shrimp, Japanese restaurants started pushing the envelope starting in the early eighties, going from butchering live fish in front of customers(to make sure it's the freshest possible), to actually serving things to customers that are still living for the first few seconds, to actually serving living things, basically for crazy businessmen and thrill-seeking tourists. So, just like how the most fucked-up hentai is actually made by westerners, we have nobody to blame for this crap but the western weeaboos.
There was a scene in The Challenge where some people consumed a live, wriggling loach (from a loach hot pot) to prove their manliness. Like, they had to put their hand over the top of a glass full of water with one loach inside, so the loach wouldn't jump out, and drink the loach whole. This was a samurai homestead, so it's not really accurate to say a ganguro or otaku would be doing this.
I hate focusing on the differences of cultures just to "foreignize" others, so before people start going around talking about this we should remember this isn't a widespread thing. Animal Planet already has people thinking all japs eat whale, while less than a tenth of one percent actually consumes it on anywhere near resembling a regular basis(Back to the weeaboos fuck up Japan thing, the person who pushed for Japan to commercialize whale hunting, a long-dead practice, was SCAP Gen. Douglas MacArthur, looking for a cheap, carbohydrate and calorie rich food source for the starving Japanese populace).
In fact, Japan offers more culinary freedom while still maintaining safety for the customer. While I wouldn't eat hakodate squid or a live loach, I'd like for it to be available to me if I did have the urge to try it, instead of ignorantly pushing it off my plate, as well as the plates of everyone around me.
I still think eating dog is wrong.