That maybe true, Japan just does what they feel they should do, and I can't fault them for doing that. (Not to say some can't criticise the end results.)
But touching on Utada Hikaru, correct me if I'm wrong on any of the following points: whenever people in Japan come out as homosexual, trans or non-binary, it feels like the Japanese public by comparison to the rest of the world just goes: "Cool." And go about their day, with the exception of some oldies.
(Can't quite figure out why Utada went and identified as non-binary though.)
The only things they seem to take issue with, is individuals forcing their political messages and beliefs down everyone's throats (Case in point: The Olympics, which isn't really a good place to be making political statements at the best of times.)
Also I find it funny that "Based Japan" was something that occured after the U.S. went in and did their thing in WW2, and even potentially instilled "Based Japan" as a result of WW2. Queer behaviour and other stuff like that was all the rage in Ancient Japan.