A lot of people including me experience the exact same thing so you are not alone! I think that a lot of people want to see the improvement, but it actuality we can be quite unaware of exactly how far we've progressed.

Just being able to recognize Kanji is a huge step. If you truly think that the school level you're studying currently is too easy, either speak to them about it or find an alternative at home. I think a lot of people skip out on revising grammar functions and verb conjugations which are a huge part of the language and I see all the time people saying things like "I'm learning Japanese, I can write Kanji, Hiragana and Katakana!", but when presented with the task of doing things like writing an essay, they're at a complete loss.

Sometimes to feel progress you've got to do the boring, less fun stuff but it's all in the journey of studying Japanese. I had to write essay after essay of various topics and yes sometimes I didn't want to... but I knew that it was exactly what I needed.

Immerse yourself in more Japanese media, and not just Anime. Watch things like interviews from Japanese people (subtitles or not!) Get a feel of what exactly occurs day to day in Japan. Children shows, books, magazines.. just anything you can get your hands on. I like to read shojo manga in Japanese rather than just the translated versions.

All in all, what's really important is what works for you. Some people don't learn Kanji by exhaustingly writing it over and over again. Some choose to learn a different way, and that's fine. Don't feel like you have to go for the same books everyone is reading or try the latest super popular product that's bound to have you speaking like a native!

That's just me anyways.

It is true that many Japanese people do not expect people from other countries to know each and every one of their customs, but I do believe that following the minimum requirement would make things a lot easier. I guess the easiest thing is to not draw too much attention to yourself, and follow the signs. With that, most should be just fine!

But the way that you've presented these facts can seem a little standoffish to some, as everyone here is learning at their own paces and some do not even have the opportunity to visit Japan.

If you're looking for a free alternative, AZ2009Japan's videos are very informative and teach you how to make sentences using different particles and grammar functions. I'd say work yourself up from the first video and make examples of your own.

Good luck!