mm yeah to western eyes its seems crazy, i've seen used women's underwear in vending machines with the photos of the girls who wore them in japans red light district, and i've seen guys in suits sitting on a train while they're looking at bondage magazines and hentai sitting next to people on their way to work, people just seeming not to care or just ignore it.
Correct me if i'm wrong but its what i've experienced, i can honestly say i've never felt more welcome in a culture than i have when i went to japan but a lot of the red light district is shielded from westerners hehe.