People about Cosplay...
It depends on what you mean by popular. It’s more or less exclusive to conventions, which have the benefit of only happening once each year per con. Attendees like myself have time to craft and sew awesome things. I know why I like it-it pushes my creative boundaries and has become my full time hobby and side-job. It’s very fun to be someone else, but it’s also fun to show off your work. I made my husband a great Groot costume for DragonCon last year and it was one of the best weekends ever. We had a blast as ‘Rockette’ and Groot. There’s something about participating in a huge fandom that is just pure fun.
I don’t think it’s really all that popular with the general public, when people don’t know who you are it can be disappointing. They don’t really know what to make of you when you come into a restaurant painted blue with a handful of storm troopers after an event or convention. Kids seem to go nuts over it though, I’m also a member of Rebel Legion and dress as Princess Leia for events. Adults are amused but kids go crazy for Darth Vader. Popularity really only seems to stretch as far as known characters.
When judging whether something is cultural appropriation, ask first: is there a cultural double standard that praises the borrower while punishing those whose behaviors/styles are being borrowed from? If not, then the second test is to see if the thing being borrowed has religious/spiritual/historical significance the borrowers are disregarding or disrespecting for the sake of ‘cool’. Finally, does the act of borrowing reinforce stereotypes?
To answer your question, No. Cosplaying in the past hasn’t been used to marginalize, dehumanize, or stereotype the Japanese people. Cosplay has no major religious, political, or spiritual significance, even in Japan it is considered a commercial hobby. Cultural Appropriation is problematic because the hegemonic group (in the US case, white people) get praise for behaviors the group that they borrowed the practice from get penalized for (in this case, Japanese otaku). However, Japanese otaku have the same or superior status as American Cosplayers at US Conventions and English language internet. Japanese Otaku are not facing a double standard when compared to white otaku that favors White otaku.
There are some racists who may say white cosplayers look more like the anime/video game characters then Japanese cosplayer, but those types tend to be seen as racists and pariahs in most well-balanced cosplay communities. Most people tend to think the Japanese have very high quality cosplay.
Absolutely not! There are exceptions, but even seasoned cosplayers who enjoy the crafting side of things will often buy parts of their costume. There’s an entire segment of the community that does commission work who wouldn’t have any business at all without the parts of the community who find skipping to the dressing up stage to be most fulfilling.
So long as you are having a good time and participating ethically (not taking credit for a costume someone else made, for example), you are doing cosplay exactly right!