I agree with your second paragraph. My feeling is if that people disagree with a project and feel that it's stealing from their culture, don't patronize it. And create your own project. I felt that it was ridiculous several years ago when the plot of Porgy and Bess was rewritten to suit contemporary standards. I felt that if anyone had a problem with the original, they should have written their own damn opera.
"Also, it is incredibly patronizing to the musicians, assuming that they had no agency -- and couldn't make up their own minds whether to collaborate with the musician from the West."
Easy to say, but musicians living in a relatively poor country might not feel they have much of a choice if they want to make a living.