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It's significantly more efficient to provide services to compact towns than sprawled towns, so I'm not sure this registers to me as a downside.

It's pretty common for small sprawled towns to struggle to keep up with maintenance of roads/water/power, which is less of an issue with compact towns.

The same applies at the city level, of course.

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The lack of sprawl is also a consequence of how mountainous the country is. While not as bad as a lot of western sprawl, the areas of Japan that are a bit wider and less populated do have an element of car dependent sprawl to them. Then of course the villages that aren't covered by the train network and aren't boxed in by mountains have a pretty similar relationship to cars as a small western town.

Where I think the US and Australia both struggle is trying to make the car work in dense cities as populations grow. We do actually have pretty dense cities in Aus, yet cannot give up the car.

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