I was in Japan a couple of years ago, and have a Japanese daughter-in-law who hasn't said anything that indicates this. I am very surprised by this info.
Ask her about the gaijin at Ueno Koen. These things may have changed, but there for awhile, it was B A D.
Lots of people came before the "bubble burst" and just stayed passed their visas.
Sometimes in Japan, problems are solved by not recognizing them.