Because I have a paper due in the afternoon and I'm totally not gonna sleep tonight..
LOL I've written a paper on this topic for my 12th grade world history class. Hated the teacher, but had a fun time doing it. Anyway...
Short answer: OTL Battle of Okinawa is called the Typhoon of Steel. [1] Kyushu is going to be a true Hellstorm. I mean, they've made so many Purple Hearts for the expected numbered of wounded that they only emptied the stockpile a couple of years ago!
Long answer #1:
Assuming MacArthur went ahead with the invasion, Olympic would happen on November 1, which could present a logistical problem - Typhoon Louise struck Okinawa in October 1945, causing quite a lot of damage to US troops garrisoned there. That was when the war's over. Now imagine a high-concentration of US military force jam-packed on the island when Louise hits. [2]
Of course, God - oops, I mean, er, Dugout Doug - was not going to be inconvenienced by a pesky bitch like Louise, so the invasion plan continues, though he'll have a to replace all the damaged/lost goodies. Assume a two- to three-week delay there. Come X-Day, first wave of Jarheads hit the beaches. Because, as noted, simple geography limited possible American beaches to a few locations, deception ops on Shikoku is unlikely to draw off significant amounts of Japanese troops, leaving the bulk of them in southern Kyushu.
The Japanese commander on the island have three options: A) open fire as soon as the first Higgins boat is in range a la Tarawa; B) hold fire until enough men are on the beach, then unleash hell a la Iwo Jima; C) lure the Americans inland and let them bust their heads trying to crack a well-established defensive line a la Okinawa. Options A and B, which I think would be adopted, guaranteed a bloodbath on the first, even second, day - I think you can expect at least 50% casualty rates, if not near-decimation, for the first-wave divisions. Floating reserve will have to go in no later than H+24. And that's assuming they could make it onto dry land - all sorts of
tokkokai units that would put modern suicide bombers to shame would be waiting to have a piece of the invasion fleet. Here, Kamikaze pilot could use the mountains of Kyushu for cover to fly as close to the fleet before going in for the kill, and negate the Allied air power and radar-guided AA (which weren't that reliable even in optimal conditions. [3]
Given all that, the Americans would still be able to secure a beachhead on Kyushu, and slowly - bloodily - push the Japanese back. If the IJA behaved like OTL, they'll probably spend countless under-equipped men (even badly-armed militia) on human wave attacks on American lines like the PVA did in Korea. At this point, if you're lucky, someone will launch a coup and sue for peace. If not, then it's time for Coronet.
Long answer #2: OTOH, if the invasion was scrapped and the blockade and bombardment continued, you could very well have a genocide on your hands. By 1945 American forces were mining all Japanese sea lands, even in the Inland Sea. On land, all things that moved on wheels, as well as basic transportation hubs (bridges, rail yards, ports, and the like) were strafed, bombed, and otherwise destroyed by warplanes. Also, LeMay's firebombing campaign has left Japan with literally no intact urban center - one of the challenge in selecting targets for Little Boy and Fat Man was that there were so few Japanese cities that were relatively undamaged by XX Air Force that could fully demonstrate the effects of the A-bombs. If the war continued, Hiroshima, Nagasaki, Kokura, and Niigata would eventually get a visist from B-san, and... well,
Grave of the Fireflies.
Essentially, both Blockade/Bombardment and Invasion would lead to HUGE amounts of Japanese deaths. Post-war recovery, if it ever happens, will take a hell lot longer than OTL. Also, US will get some really, really bad PR when the war is over - "those slant-eyed Yellow bastards hit Pearl Harbor first" can only go so far. I can see a lot of people freaking out over the extent of damage done to Japan.
[1] I've been to the Okinawa Prefectural Peace Memorial Museum two years ago. It's one of those places where you'll get physically uncomfortable when looking at the exhibits until you go outside for fresh air.
[2] I tried going out in the middle of a typhoon when one of those things hit Okinawa. It ain't fun (okay, it actually is, but you get the point).
[3] The picket line off Okinawa worked reasonably well IOTL because Japanese planes have to fly over open seas before they can approach their targets, giving enough time for Allied units to react.
Marc A