Hey, lived in Japan 8 years. Some points:
• Yeah, it’s really stupid system (i.e., trying hard in school and “juku” just to take a test, etc.), but Japanese people are fully aware that it is. I’ve never heard someone say that it’s really great, the way things should be. But nevertheless, not much changes.
• Keep in mind that there are tests to get into high schools as well. It’s not just college. (And I think junior highs as well… not sure.)
• Education in Japan is only compulsory through 8th grade. It wasn’t that long ago that being a high school graduate was by itself an accomplishment of sorts. Even today, not all Japanese people go to college. Plenty of people take blue collar jobs and have decent careers based on a high school education or less.
• Some people skip the college exams altogether by attending high school affiliated with higher education. I heard about this when I taught English in Hiyoshi, Yokohama, the location of Keio University. A student was saying he didn’t have to worry about tests because he attended Keio High School, or something like that (I am extrapolating from this one case, but I doubt it’s unique).
• Plenty of people put moderate effort into the tests, get into an OK college, and it’s not the end of the world.
•BTW, no one in Japan ever gave a shit about my specific universities (for undergrad and MBA). It was like, “You have a degree, cool.” But that was me as a foreigner.
• Japanese society is nevertheless changing, and the old way of looking at things in, say, the 1980s may not be the way things are now. I haven’t lived in Japan since 2004, so my knowledge isn’t current either.
TL;DR: Yeah, the whole testing system in Japan is a joke and is hell for a lot of people, but for others it’s not really a part of their reality.