I played a 200 year Ouichi campaign on the final build without major issues, so Japan's probably gonna be just fine.
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Is Japan buffed for keeping vassals happy in any way? Based on the mechanics that are mentioned, it seems that Japan will have an extremely hard time annexing those vassals.
Of course, perhaps that is the intent. Create an unstable area where everyone is vying for control. If so, it's a unique and interesting dynamic for Japan.
What is the current government form of japan in 1.12 ? Is the shogunate with lots of dip relations still a thing ? Can we change our government form once japan is united ?