Some notes:
While I'd be happy if the neoliberal, Iraq war, and nationalism issues would be the primary ones in LDP's defeats, my impression is that while it started with postal reform, a series of scandals were number one. Including two corrupt agriculture ministers in succession, another that explicitely called women child-bearing machines (I suspect some female voters finally had enough), the strange case of a defense minister who used to attack the USA (even deviating from the government's pro-US line on Iraq) but then fell after justifying the bombing of Nagasaki as necessary to end the war.
I think (and hope) Japan doesn't become a two-party system, but stays with more parties, even if potential main coalition partners increase only from one to two.
I wouldn't class Lula's government line as radical pushback, not at all, though it is true that neocons hoped in vain that his market-friendly social democracy can be influenced to oppose Chavez et al.
I also wouldn't list Merkel alongside Howard, Harper et al, that's a more complex situation. Merkel is an Atlanticist, and often appeases a strong pro-neocon faction within her party, but can also oppose the US and some market policies (Sarko too, though that seems to be more theatrics than policy). *Traitor*, n. A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
Still, though, the increasingly obvious concessions to the far-right on issues of "national pride" and whatnot have been really, REALLY visible. That was the point of them, really. Abe seemed to be pushing the reactionary line across the board. Unsurprisingly, given how centralized the educational system is, his policies were felt even in my local school board. There is a movement afoot to lengthen the school year and re-instate Saturday public schools, and to de-emphasize English education - undoing the educational reforms of the early 90's that many on the right have always thought to be too liberal.
However, all that is vague impressions. What I have heard people talk about explicitly, and with as much discontent and anger as I ever hear from a Japanese person, is the growing gap between the rich and the poor, and the death of what was widely perceived to be an equal society. A lot of people are REALLY unhappy about that, even in a relatively prosperous region like mine. I'd never expected in a million years for this discontent to actually translate into electoral results, because it always seemed as if everyone was just resigned to this process. Looks like I may have been wrong.
My vague impression is that he was thinking that it's time to take this stuff out of the closet, to start pushing for a radical political realignment to the right, but this election seemed to prove him wrong.