I'm addicted to Muji now and buy all my housing goods there (well, sometimes my wife sneaks over to Ikea but...). It really is very good...especially the really good balance of their 40 kuai spoons (the last spoon you'll ever buy), and I don't think I could ever use a sheet from anyone else.

I think Japan is like any other countries: there are pockets of genius in a mostly conventional culture. The same is true about the USA, China, and so on.