So is it a GOOD or BAD thing that KodomoNoJikan/Nymphet did not make it to the West due to the controversies?

The West as you call it is very defensive on what it allows for reading and viewing material. What may be considered ok in other countries (such flirting per say) may be considered awful in the west. to some people this is good while to others it is bad. Being a manga fan I have to read it myself to try and get a point of view and will get back to you if possible