I was just in Japan and yes can confirm it's a lot cheaper than here. The flight was pricy, as was some of the accommodation. However, once there everything else was dirt cheap.
We had some really nice meals at £5-6 for a main, though you can obviously pay a lot more. Beer/wine/coffee were often around £2. Public transport was great value - £3.50 for a day pass on the Tokyo metro which is massive, albeit more if you want to use the overground lines. We didn't do much shopping but Uniqlo (obviously a Japanese chain) was around 40% cheaper than here, plus a bit more if you go tax free.
It is I imagine a lot easier for the non-Japanese speaker than in the 1980s. I survived for two weeks with little more than "thank you" and "cheers". Most people we dealt with in shops/restaurants/hotels spoke some English, and signs/announcements/ticket machines often have English translations.
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