I suppose you are seeing a half full glass, where I am seeing a half empty one.
The LTCI system doesn't really seem very different from the usual national insurance here to me, except that a further tax on everyone 40 and over is imposed to pay for it. And if you use its care, you still have to pay some of it yourself. Again, like medical treatment under social insurance.
A high % of older people are in work, and it is a positive step that the government have made the age at which companies can force their employees to leave at 65 instead of 60. I don't really see it as a good thing that people now feel they have to stay in employment longer because of financial worries.
Older people are healthier in Japan than most countries. That's not really because of anything the government here has done. In fact, the government could do much more, such as tighten smoking laws, but they don't because they are such a huge stakeholder in Japan Tobacco.
I am not sure what you meant by focus on community based care so I didn't comment on that.
None of these is likely to have the slightest effect on the dropping birthrate. I get that once it goes into precipitous decline, it is almost impossible to turn around, but some legally mandated improvement in the work life balance might at least slow the drop, and lead to a better quality of life for everyone. But the government are far too in thrall to the corporate sector to do that.