Dwarkin They shouldn't, and that is a culture thing. Readers who like chinese novels like and are used to the cultural side of them, so I am in complete agreement with you.
It is the same reason I generally won't bother reading a novel by a western author imitating eastern culture. They go "I like that, so I will write one of those" and try to imitate a classic xianxia or god forbid a wuxia. But they don't have that cultural background and are at best relying on second-hand imitation. Whilst there are a few that are good, even great, the overwhelming majority of them are garbage because they are trying to write in another person's style.
It's the same as when people try sing songs in the same voice as the singer.
Culture is important in writing a novel, and changing it so that it doesn't match is never a good idea. If they truly wanted to westernize these novels, they would have to basically rewrite the entire thing, to the point it would basically be a new story. Simply replacing names and stuff is quick and sloppy.