Bryce Bing comments

I think it's important for Westerners to understand two apsects of the Japanese society before they jump to the conclusions on subjects like the cuddling cafe: the Japanese's service culture and the Japanese Mobster (Yakuza).

The English word "service" is actually used as Japanese word "sabisu", but with different meaning. "Sabisu" in many occasions means giving favor to a patron. When it comes to serving other people, the Japanese is very dutiful and serious, like perfoming a job. So, sabisu is a serious business for all kind of services. If you can get tip by serving a customer food in the Western world, why can't you get paid by dutifully lending an arm to a customer to sleep in Japan?

Secondly, the sex industries in Japan are, without exception, operated by the mobsters (called "Yakuza" in Japanese). Theses mosters are rude and sleazy just like their counterpart in the West. But by no means the Yaksuza represents the average Japanese people.

If you can understand these, you wouldn't say things like "Japan is creepy" since aberration from norm is the characteristic of human society anywhere in the planet Earth.