The default scope of everything is package level. If one writes all of their code in one directory, Java is basically procedural code with syntactic sugar for functions with structs as the first parameter. The moment you want to share with other packages, one has to use the public keyword. I'd argue what Java 'wants' you to do is to have a few public methods that operate on internal state, but it doesn't care too much if state is shared within a package. A good Java API wouldn't have many Setters/Getters that do nothing but set/get references to internal objects, but rather ones that parse and make sense of it's internal state.

In practice, I've found most codebases don't care about any of that so every variable is private, they all have public getters/setters (so it's NOMINALLY encapsulated) and most methods are public with a few private methods strewn about.