Is this a widescale issue or just a few cases?
I think 'fire' is a bit of an over-reach for a few issues...
EDIT: Reading more of the thread I see it's not a few, but a widespread issue)
That said, if I compare this to FFXIV, there's a notable difference. I'm of the opinion that in FFXIV, the English version is actually better written than the JP version - but it's a feedback loop as their English localization team is located in Tokyo and (prior to the current world issues) worked in the same office - and it was done at the same time as the JP version. As in, the localizers were also part of the original writing process. One result of that is things like humor - moments like that were given dual approaches not just for language, but to be funny in multiple cultures. Things like tone, innuendo, etc differ in the versions - but for the purpose of wide appeal, and the story ends up in the same place.
(Basically I'm saying the localization that was done for FFXIV should serve as a model for the 'best possible example' for future game devs around the world.)
Here we're looking at people coming in 8+ years later, and most likely not seen as core team members. They're probably contractors.
If over time anything hurts the NA games appeal, it will be that - that we're much more obviously an after thought and not seen as a shared part of the core customer audience.
Slips like the above are probably just a 'good enough to keep the game moving to the next point' issue... The translation contractors were likely assigned the task of filling in names in some part of the database, but not assigned the task of writing items descriptions for everything.
The blame for this does not fall on the translators... I agree with those who say it would fall on SEGA. They're the ones who would have assigned what translation teams would work on, but I disagree on blaming MicroSoft - I suspect MS's only involvement here was to make a build that would run their app store (which they failed at... initially, but that's a wholly different topic).