I agree with what you said. I do think a lot of Americans forgot the idea of 'saving face' and are often too outspoken and seem quite happy to be loud and embarrass others in public. This often makes the other person have to be more aggressive than necessary to protect their image and now a big argument or fight happens. Of course, some Asians go to far to avoid confrontation and make things worse by not dealing with the issue in a direct but polite way which can be done if you discuss things in a private area to protect everybody's face. However, I have seen a lot of loud and quite public arguments in China especially among older people. I think South Korea and perhaps Japan might have more of a stronger culture of 'saving face' although it does exist in China as well among many people. Perhaps someone who lived in South Korea or Japan can give more information (I lived in China but only visited South Korea on a few occasions).Ha, you got me there! In all seriousness, though, the "face saving" goes deeper than just simple courtesy or politeness as we know it in the West, particularly because it's related to the far more hierarchical structure of their societies. It's not so much about just saving your own face as it is about saving the other's face. It's a kind of indirectness and implicitness which can be very hard to decode if you're not used to the local culture and customs. You have to read between the lines a lot more and the word "no" basically does not exist. Perhaps "high-context societies" is how they're best described in that sense. To be fair, I think there's a certain elegance to it compared to the crudeness us Westerners tend to be prone to these days. Yet it can also lead to hypocrisy in the sense that people are forced to neglect openness, honesty or sincerity in order to show respect for rank and authority. At least that's based on my own experiences and observations from others on this.
I read 'How to Make Friends and Influence People' a couple times and some of these ideas were discussed (not the term 'saving face' but similar concepts). One example mentioned in how Lincoln nearly got in a duel because he publicly criticized someone. He learned a valuable lesson from this and learned how to 'save face' and how to deal with people in conflicts better. I highly recommend this book (which is free to download). A lot of Americans have forgotten these ideas and go to far the other way in being too direct and critical and often in a rude way. Part one relates to this.
Both cultures should work on some happy middle ground regarding conflict resolution.