萌え (Moe: literally, "bursting into bud") is a relatively new word. The easiest explanation of moe is that the obsession with beautiful little girls, bishojo. Moe had been a kind of jargon used by exclusively Oataku (お宅: literally, "your home"). Every Otaku person knows Moe. For them it's just so basic. But there's a huge gap between people who know the word and who don't. And those who once visited Japan might know, It clearly corresponds with another gap between those who know that Akihabara (until recently this area was only portrayed in media for household-appliance stores. ) is now the territory of Otaku and those who don't.
Over time, the focus of otaku taste shifted from science fiction to anime to eroge (erotic games), as young boys who once embraced the bright future promised by science saw this future gradually eroded by the increasingly grim reality around them. I think they needed an alternative.
There's common phrase, Two dimension, to describe likeness toward eroge or bisyojo Anime. Uhmm I can imagine what you are probably enjoying right now, then you can say "I LOVE TWO DIMENSION!! TWO DIMENSION FTW!!" . That's it.
But perhaps this is not very accurate. Actually from my personal experience, beside the fact that they have Otaku taste, many of them are peaceful and nice persons. I think that's because they are socializing so closely within their Otaku communities.
If you look for a Western equivalent, it would be Decadence, or the Baroque, though theirs is a tendency toward excessive decorativeness. I imagine such people think of themselves not in terms of "See what we've done. We're amazing," but more like, "See what we've done! How pathetic we are!"
This pathetic tendency is corresponding to the extremization of otaku culture.
Up until the 1980s, people who watched anime—any kind of anime, be it Hayao Miyazaki or Akira or whatever—were all considered otaku. Today, Japanese anime is so accomplished that one film even won an Academy Award. As a result, grown-ups can safely watch, say, Miyazaki's anime without being despised as otaku.
The upshot of this is, as soon as anime and games earned respectability in society, otaku created more repugnant or extreme genres, in Japanese I may say hetale or dame na genre, such as bishojo games and moe anime, and moved on to them.