I figured I would toss in here.
To the OP, if you could actually see the struggle of everyday Japanese and the pressures they face from both sides of modern and traditional culture, you might sing a different tune. The Japanese traditional culture is just something that is not flashed to outsiders like the commercial culture is. It's considerably harder to understand and usually steeped in the nation's history, along with the language which is hard to comprehend for people who haven't studied it.
I am not an expert of Japan, nor am I an expert of the language, so don't read those statements into what I said above. There's a lot about Japan that I don't understand, and can't understand because I can't ask them why. But I find it disingenuous to claim that their culture is based on racism and exclusion. Is it a homogeneous culture? Probably, as it has to do with the fact that the spread of physical features is considerably more limited, but to claim that they all look alike is also false. Cultures based on mass physical similarity are probably going to develop some exclusionary aspects, and there is no "perfect" culture. You might say that American culture is based on inclusion, yet in its own way breeds anti-intellectualism and a contempt for achievement, because to succeed above the heads of many is to be "exclusive" to others. Argue that however you wish, I'm simply saying there is no culture without flaws.
If Japanese were wholly based on exclusion and racism, then why have so many been so friendly to me? Why do they applaud and encourage even my pretty bad Japanese, or compliment me on how well I'm learning about their culture even as I make a dozen mistakes that I can recall? Why have small children virtually flocked to me when I go to their school simply because I'm different, instead of cowering meekly from the giant, ignorant barbarian? Every time I attempt to incorporate world culture into a lesson, it's received incredibly well - and I can make an aside here to prove a different point, that being, Japanese kids are just as ignorant of everything outside Japan as most American kids are ignorant of everything outside America. American kids don't have a monopoly on stupid.
All of Japan is not Akihabara or Tokyo. I live in a place where my next door neighbor is a farm. Traditional culture still exists, kendo is wildly popular, most every kid still knows the bon-odori, people will still wear kimonos as normal everyday clothing to go shopping or to a restaurant. Beside that, not on top of it, is the culture of cute, the commercial Hello Kitty culture that the world sees, and some people dismiss as vapid and shallow. Even with my lack of mastery over the language, I can still hold conversations with people, and I do ask them about their culture. What I have told you comes from the mouths of Japanese people themselves, and I don't see how you can get any more to the source than that.
Disclaimer: I live and work in Japan as an English teacher.