On their current trajectory, they will be an extinct race in about 50 years. Instead of being insular they should look outwards. Open up migration and stop being racial and maybe that will introduce some fresh ideas. You loose some but win in the long term.
They already did that. Japan is easier to immigrate to than the US, but it's not necessarily attractive because wages are lower than Western countries.
The reason you don't hear about it is everyone is years behind on Japan stereotypes, and they shut everyone out again for pandemic management. But the "98% of Japan is Japanese" quote is not true (it actually means 98% Japanese citizens).
