Yeah, well, Japan is led by moderates, but...this is still the state that OTL thought the Pacific War was a good idea.
One thing about this TL: I think you could have had an Empire of Japan that became progressively less axe-crazy. That does not, however, mean that it'd be a nice place. Hence, ITTL: nuclear proliferation; using sarin gas during the Indochina War; continued repression in Korea; and presiding over the partition of China.
OTOH, there are slow signs of improvement and, over time, Japan's leaders will increasingly realise that this kind of stuff is Not Good for Business.