hmmm, japan does NOT "treat foreigners very well and hold them in high esteem." well, i guess this is true for short-term visitors - you'll be treated like royalty, as japanese people are very
outwardly polite (for a limited amount of time.) BUT if you want to live there, you may have a problem with people hating your guts and thinking that you're a smelly, rude, creepy gaijin, etc. the japanese code of respect is a pretty difficult thing to grasp, especially if you didn't grow up there - some things that they find offensive are boggling and complicated and sometimes irreparable.
if you end up in a small town like xfer mentioned, you might end up being treated like a black person in 1950's america - except you'd all alone in it. i'm really scared of japanese farm-folk.
if you want to try it out, definitely try to live in the bigger cities.
i personally wouldn't recommend living in japan for more than 3-4 months. that's all i can handle, at least... and i AM japanese. since i grew up in the US though, they don't really consider me one of their own, despite the fact that i speak japanese fluently (and with no accent.) fuck, they don't even consider you japanese if you grew up in japan, leave the country for a few years and then come back again! they're that picky.
hi, i sound really bitter. i really hated living there past 3 months. i guess it's not as horrible as i make it out to be if you're just not hyperaware of the social codes/culture like i was. it's tough being a gaijin and at the same time being able to understand fucked up shit people are saying or doing (because they don't think you'll understand) AND then knowing exactly what's going on... but then not being able to do much about it.
of course though, the upside... great food, amazing sights, totally weird shit that you have to blink a few times to make sure you're seeing it right, awesome technology, awesome fashion, talking/remote control toilets, general charming quirkiness/creepiness. japan is amazing amazing amazing to visit.
used schoolgirl panty vending machines are now illegal though.