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@Grand Historian : I'd just like to say thanks for the work you put in to this suggestion :) You'll hopefully be happy to see both parts of your NIs and some other things have made it into patch 1.20.
 
I feel the biggest problem with shinto atm is that it loses its unique mechanics if you convert off one of the event chains, so perhaps it should have the ability to do something similar to synchronisation or harmonisation, where converting gives you different passive bonuses but keeps shinto's mechanics? Or something?

It doesn't actually work like that. Event chains won't convert you, they set a flag that let you convert once you form Japan (or not).