"The reaction from our Zen friends?"
I don't have feel the need to protect Japanese Zen clergy. Some people have poked holes in Brian Victoria scholarship - it seems that some of statements were taken out of context and somewhat misinterpreted. But in any case there was quite a bit of support for the war among the Zen teachers with a few exceptions that were clamped down on.
Even very insightful and intelligent people can get swept up by mass mentality like in Germany and Japan before the war. I wouldn't think they were enlightened but they could still possess a degree of insight in other matters. It is not a trivial task to be in the world but not of the world, to have the finger on the pulse and to see beyond the currents of time.
Of course some commentators (like Thomas Cleary) believe that Zen in Japan has degenerated but from what I hear there are still pockets of the real deal here and there and hopefully the revival of Western interest will help to reinvigorate Japanese Zen and reconnect it with its origins where such connection has been weakened or lost.
I remember on the defunct ESangha, a Japanese Soto practitioner matilda often came into conflict on substantial issues with Western Zen teachers which also shows that may be assuming too much when we extrapolate from Western Zen to Japanese Zen. What we see is often just the tip of the iceberg (and often the wrong iceberg!) and there is invariably much more to the tradition.