Yes, very strange strategy chosen by Kobe, especially while Osaka is booming.
I visited the city for a day while I was back in February, and felt that Kobe is really not ageing well. It used to be one of the coolest, most modern cities in Japan, but walking around Sannomiya (which is still great at night), everything is starting to look old and tired, and there has been very little new development anywhere in the city centre. The Sogo department store for example, has seen far better days and looks really shabby inside now.
Down at the waterfront, you're greeted by a very bland and soulless shopping centre, and the equally bland Mosaic. They've added a few wedding hotels and the cruise terminal but it's still pretty boring around there sadly.
Chinatown is fine, but the old European quarter up around Kitano is also ageing very poorly.
It's a real shame as I love the city, but Osaka is just pulling further and further ahead while Kobe is being left behind
