I would like to hear about how these ideas entered Buddhism in Asia. I've only really heard it from Westerners.
In Asia, there is a huge conflict and an attempt at reconciliation between scientism and belief in Buddhism. Not only young people, but even older generations who are trying to be scientifically knowledgeable. This is why they are embracing a more naturalistic worldview, while keeping Buddhism since it's their upbringing and identity. They identify as Buddhists. And in polls they identify as religious. But I believe that if someone does a good qualitative research they would find that "religious" for them is to keep the morals of Buddhism but believe in anything beyond a naturalistic world view. But I don't think that type of qualitative research has been done.
The thing is this. Within the Buddhist scripture, like the Sutta Pitaka, although there are various deities and gods mentioned, the Dhamma is portrayed without heavy metaphysical core principals. The Dhamma is recognized as a path of practice encompassing conduct, meditation, and insight, aimed at achieving the cessation of fundamental suffering (dukkha). So as a Buddhist, it's easy to reconcile between their modernization and their "religion" which they call "philosophy". A few decades ago it was religion (Agama), and it slowly but speedily changed into philosophy (Dharshana). I have heard from many. If you say Buddha Agama today, it's almost offensive.
I guess the western Buddhism was influenced by Zen Buddhism. Especially in north America where it was the Chinese settlers, the servicemen returning from WW2 and the Korean War brought their Buddhist culture with them. Although Theravada Buddhism definitely exists and is active. There is a famous temple in Washington DC. Very active, well funded, and very nice. But the Asian countries we are discussing are defined by their Buddhism. It's intrinsic, and bound to their personhood. That's why this is something truly fascinating to understand. I guess it's similar to the scenario you spoke of.
