*De-lurk*
I think the problem with the monk is one of genre conflict, rather than East vs. West flavor conflict. Sure, the monk is probably tied a little too closely to the Shaolin monk concept, but I think there is room in D&D for the mystic, jedi-esque, discipline-of-the-mind type of archetype. The problem comes from—setting aside the specific mechanical issues--making the monk a ‘martial artist’. A mobile, acrobatic light-fighter? Fine. Having martial arts ( and by martial arts I mean bare-handed techniques such as kung fu, etc.) skills there when the situation calls for it? Fine. But to make that the monk's main schtick? No thank you.
D&D tries to cover a rather wide base of fantasy genre and conventions, but I just don’t see plain vanilla D&D covering the chop-sockey kung fu well without major clashes...at least not without an Oriental Adventures type supplement that focuses on such a campaign. Outside of a campaign that is very humanoid-centric, where the characters engage in little more than tavern brawls and street fights, I have a hard time accepting the guy who runs around fighting with his bare hands and whopping skilled warriors armed to the teeth, let alone monsters. If your 'martial arts' master is handing my skilled and highly trained fighter/barbarian/paladin/knight/Ranger his backside in any put very unusual circumstances, he better be either one of two things: have a lot of mystical mumbo-jumbo going on, or be much higher level.
That said, I think the monk could focus more on cool, more psonic-like abilities, such as the psonic focus feats, or the newer, similar feats for fighter types in PHBII (forget name) and less on bare handed techniques and be much more palitable. Sort of more of a psychic warrior arch-type.