I don't necessarily think it's any better or any worse than western culture. My perspective is "it just has different failure modes".
From the moment you are born you are taught to care about what and how others think and feel about you and your conduct. If it's not your social peers, it's the literal Sun ("Otentou-sama") looking down upon you and judging your every single moment. If you shame yourself, you also bring shame upon your family and your ancestors both living and dead.
To be clear: This does work, and most Japanese are happy to serve society rather than feel compelled to do so at threat of cancellation. There are also benefits for the compliant, namely in the form of social safety nets both legal and social to ensure a minimum standard of living.
Japanese expats are a particular bunch, they left Japan because they couldn't stand the shaming and strict adherence to social codes. A kind of "you can't fire me if I quit" response.
Cultures are never just dysfunctional; there are usually a complicated set of compensations that makes the dysfunction more bearable. I'm curious how that works.
The compensation that makes the dysfunction more bearable is the culture of "gaman" which is deeply, deeply ingrained from a young age. It's normal for them to just suck it up and tolerate shit they don't like. It's a way of life. For everything thing else there is "shou ga nai" which often translates to "it can't be helped" and many Westerners think it's just Japanese people giving up too easily and don't really get it, but it comes from the Buddhist philosophy of accepting things as they are.