It’s entitled to say those people are ‘Japan’ and the other people there, who want change are not.
2) The reasons for anything large on a societal level usually have more than one nuanced answer, but I'd like to try and figure out your meaning here. What significant evidence exists that certain things you listed such as Japanese youth not wanting to live in rural areas or youth not making as many babies as previous generations has anything to do with their treatment of foreigners? I don't really see a direct and obvious connection, and in fact these trends seem fairly common in Western youth (with a radically different inclusive culture) as well.
I would argue, this is why their economy has stalled relatively, since the 90s.
Therefore, I'm not seeing a strong case for Japan's problems being caused by them not being welcoming to foreigners because other countries are welcoming to foreigners and still have these problems in greater number today.
2) Regardless of whether you or Japanese know what's in their own best interest, can you please answer my general question. Is it Japan's duty to try and make life better for themselves first, or for you first? Can we acknowledge that it's any country's first duty to try and seek out the best possible lives for their own people first?