Nuclear Japan actually won't be a problem. It will spur East Asia and Russia into an arms race which would only push their militaries further. If it ends in nuclear war, the US will get annihilated with it... honestly the rest of the world probably will too since Russia would be involved. If it doesn't end in nuclear war, all these nations would have growth in MIC which would be good in their case since they can do with a better MIC. If it ends in conventional war, the Japanese would lose. They have few young people to lose and send to war. China alone has more young people than the entire east and southeast Asia region plus Russia combined. Japan would be the main target of both Russia and China and Korea sure as hell wouldn't go to war for Japan. At most it'll stay neutral while working on nukes as well.
Unleashing Japan today is not like the Japan of the past. They have no appetite for serious ability for high intensity warfare. China alone would be able to take on Japan conventionally, if things go nuclear the US would be included by everyone possibly even the Japanese lol.
Clearly a stupid man's thinking to unleash Japan. It would actually be a Godsend for China if Japan was unleashed. It isn't the bulldog against a starving man anymore. Japan is the half dead starved puppy now. A lot of talk of high technology this and that but there isn't a single military domain or MIC domain Japan is stronger in than either China or Russia. It has a much weaker society now and even less appetite for war after what's happened in the 20th century. A Japan that publicly builds a bigger military is only going to give China a reason to unleash itself. China is barely jogging along. It could afford to triple military spending and MIC.
Let's remember than China has the world's largest supply of steel and it has one of the top 5 largest supplies of proven raw materials for war factories. Even if raw material imports stopped, China would have enough within China to build the world's largest military. It does everything itself and can make as many as it wants. It has a large skilled workforce greater than the developed world. What appetite does the developed world have for nuclear war and conscripting their soldiers to fight and die horribly in Asia? Against a country that has not invaded a neighbour, not committed warcrimes, not done anything above even their trumped up fake charges which by themselves are not reason enough for war. Most young westerners can barely get out of bed or put their brains to learning STEM fields. War? don't make me laugh they'll be begging for ceasefire before the shooting starts. So if some western leaders want Japan to be the sacrificial pawn, a few East Asian nations and Russia would only be too happy to finish that off and divide Japan up. Maybe that's the sort of role these western elites have in mind for Japan. Hopefully Japanese politicians aren't willing to be the "new India" and only want to continue trading and peaceful conduct. There are some empty platitudes given once in a while but overall Japan is very much sane and has no interest in playing the designated western meatshield.
Most Japanese people today are extreme pacifists. They have no intention of going to war with China over Taiwan. They no longer control Taiwan like in the past. They have nothing to gain.
Beyond some exercising with the quad, Japan will not fight a war against any adversary that could potentially end them in any way they please. They have no desire to conquer Asia like they did in the past. They have no need for more raw materials and land. They have social issues that make America's and China's look like a walks in the park. Japan has under 10 modern surface and subsurface vessels. They barely have an army and in this day and age of offensive weapons, supply chains will get annihilated before their Type 10s can find their next rounds of ammunition. Developing nukes require some testing and there is no way such a secret would not get out, if not by detection of tests then spies would uncover it. It would only give China more reason to stockpile thousands of warheads which would be good for China. If Japan choose to nuke anyone, the Americans would be targeted for allowing it. Just like if the UK nuked Russia, you can bet your last dollar the Russians would nuke the US.
The US has no advantage by allowing Japan to develop nukes. It would only be more nukes they control less than their own. If Japan nukes anyone, the Americans get nuked in the thousands. Bye bye USA. So where is the thinking behind this? I'll tell you, it's for public consumption. It sounds good and western chauvinists want to hear this. It gives them the idea they will have more nations they can put in front of them or back them up. These Generals and key military men do not actually think these are good ideas. It's all an act for the public. You will get an answer that's designed to please the crowd and the overall consensus in attitude. It's to keep alive the idea they can tell Japan what to do. That they are in charge and Japan serves the USA. It's satisfying to western egos. When you live and understand western thinking, you immediately uncover this. It's like asking women in public on camera if they find you attractive. Do you really expect honest answers?