I'm with you both on this.

One of the most depressing things when you start to get into Japanese culture is precisely learning the ridiculous lack of awareness about racism, and the extent to which condescending attitudes are propogated. Although this may have sprung from its relative geographic isolation and demographic homogeneity (ergo, a belief in their 'uniqueness'), for a nation so praised for its "modernization," its fundamental principles are sorely lacking to include other groups of people into their sense of community.