They do in Harajuku. And the stye over here is a j-pop type fashion, we take the parts of Japan that are well known for being bright coloured, wild and in yo' face, (Japanese adverts are well known for being generally crazy), and it's from these sources that Otakus have taken their inspiration. Otaku in Japanese may mean a bad thing but as far as us English speaking countries etc feel, it just means anime freak. Words do change meaning now and again through translation, just like they do over time.