It is definitely a little high, and I have no doubt you could live way cheaper. You could probably rent an APA hotel for less than $50/night, eat more local for $5/meal.
Yeah right now the most expensive part of a trip to Japan is the airfare. That might set you back $2700.
Nah $700 per week for an apartment, I'm assuming it's in a good area of Tokyo, sounds about right. You can get that high in other western countries without the service part.
Japan is significantly cheaper than many western countries.