I thought this article was pretty good. It can be hard and even counter intuitive to talk about the nuances in a language from "outside" of that language, since oftentimes those nuances are rooted in how it is naturally spoken and how it has organically evolved over time through shifts in culture and society which might only be observable to a native speaker. I think this essay does a good job of touching on some of the ways KH has been structurally informed by its language of origin with specific and clear examples. While some of this is lost in translation, I do think it's important to note that, in the first place, many of these linguistic structures are simply untranslatable because there's no equivalent mechanic in English. At the same time, English
does have a lot more flexibility in terms of how to organize a sentence for purposes of inflection than is typically heard in Japanese: a good translation/localization team with a grasp of how to parse out the right sound rather than the direct meaning of a passage in Japanese can convey the same information in as little time, it just takes experience and a skilled ear.
I feel like KH hasn't been
too bad at this, on the whole. Putting aside some questionable vocal performances, the scripting for the English edition has been, as far as I can tell, generally about as messy as the original Japanese: whether or not there are perceivable differences in content delivery may be, literally, a question of semantics. Xion may not be able to use "atashi" in English to denote her unique self-concept, but that's all premised throughout
Days in the context of her interactions with others and how she investigates her existential design. The fluctuation in Terra's relationship with the Masters in BBS is deliberately plotted so that it's unmistakable in either language: I think, in that case, the conversion between pronouns is more of a function of the plot insofar as it wouldn't make any sense in Japanese for him to use another pronoun in those instances (much like Aqua really has to use the informal/derogatory form of "you" in some scenes for it to play right dramatically). Mostly, I think English-language listeners ultimately arrive at the same conclusions as Japanese-language users, it may just be more gradual or it might take some extra attention to syntax on the part of the translator.
EDIT
Anyway, my point being, when people hug each other it is fairly meaningful. Moreso than in America since hugging is much more common. In KH2, you can see that when Tron hugs Sora and he is considerably taken aback by it, saying it isn't something he is very used to. So, when Sora and Kairi finally meet each other again in TWTNW and they hug...it's kind of a big deal. I think a lot of people saw that scene and were like "aw...but he didn't cry like with Riku so it clearly doesn't mean as much". But that is a bit of a cultural difference, I think.
I agree that this is a really interesting moment which is perhaps lost on Western fans as a gesture of import, and a good example of how a cultural variation can change the way a scene reads to an audience. As with the examples I mentioned above, I think there's a follow up to this gesture which helps clarify its intent: Kairi whispers in Japanese, "夢ã˜ã‚ƒãªã„†("It's not a dream") and in English, "This is real." That helps us understand that the moment is about substantiating their reunion experience through a permanent closure of the distance between them: in other words, Kairi is physically "grounding" Sora to that time and place, to ascertain and affirm his authentic presence (in KH2, everyone is displaced in both location and identity) through an appropriately striking expression of both affection and conviction. We see this measure of intimacy replicated in a similar vein in DDD, when Sora turns it around and uses it on Riku with a similar invocation: "You're safe, Riku!" The way Sora emphasizes this statement through repetition tells us it isn't just about Riku returning successfully from the Realm of Sleep, but speaks to how he has at last accomplished the more vital mission of restoring his place of belonging within the Realm of Light, and this overt physicality is then used to underscore these kinds of final pronouncements.