GoNative and Tsuwabuki,
I'm not supporting the "Japanese Only" policy at all. I think it should be condemned. However, if you really know WHY it happened in the first place, and if you truly understand Japanese culture, you can't just say 30% of Japanese population are hardcore racists who refuse to service foreigners just because they hate them. He's pretty much making it sound like it, and that sure piss other Japanese people off.
Let's say we've got a bunch of Martian in town. They are pretty similar to us but don't know the culture on Earth. They don't use silverware when they eat, and use their hands instead. In their culture burping at table and spitting is a good manner to show the host their satisfaction.
Now you have a group of them in a classy restaurant. The manager sure gets complaints from local patrons. But he doesn't speak Martian so there is not much he can do. He gets a group of Martian once a week, and more and more complaints. After 2 months, he decides to put up a sign in Martian saying "Earth people only".
Now, I'm not saying Martian should be excluded from the restaurant, but if you know both languages and cultures, shouldn't you be promoting the understandings between them? It seems to me, Debito is rather purposefully staging the dissensions.
Like in this video, he's asked for his alien registration card by a cop, super politely in my opinion.
YouTube - 反日アメリカ人 vs 洞爺湖サミット警戒中の警官
And he keeps saying "日本人です"”日本人です” . But come on. He has a strong foreign accent, and his grammar is a bit shady too. Why can't he just say "帰化したので、今は日本人なんですよ（I neutralized）". One word could have instantly solved the situation. But instead, he kept on nagging and nagging the cop. If you are asked for an ID in the states by the authority, and speak in thick Mexican accent, and goes like "Me american. Why you want ID?" and refuse to show it, you can get arrested.
I'm not saying his intension is bad, I'm not saying "Japanese Only" policy should be allowed. The lawsuit against Onsens in Hokkaido was probably a good thing. But his taking a very American approach to very Japanese problems, which is ironic considering he wants to be treated as Japanese. Regardless of what his intension is, what he's doing, at least some of them, don't look to be really promoting the real understandings between both parties. In fact, that video surely attracted some hatred towards Americans.