Some people speak English, but you can never tell who will or won’t. Everybody studies in high school, but they don’t study conversation, so they can’t speak very easily. Even if they can’t speak English, though, they’ll try very hard to figure out what you’re getting at…
Is Japanese difficult? Yes and no. It has a very unusual system of grammar, which can be kind of scary. Once you get the hang of it, though, you can get by pretty easily. Depends on how talkative you are naturally. The good news is that no matter how bad your Japanese is, if you try to speak it, people will tell you you’re a very good Japanese speaker. :)
Purchasing power…. I know almost nothing of economics, but I’d have to say that purchasing power here is pretty good. Not as good as it was 20 years ago, certainly, but good.
Children’s education is changing – it’s not as strict as it was (some schools used to have teachers patrol the local arcades after school hours and punish students for not studying), but it’s still pretty rigid. Students study very hard in elementary and junior high school so they can pass the high school exams. High school students study like crazy to pass the university exams. Unfortunately, students are guaranteed to advance every year, so students who aren’t interested in college quickly learn that they don’t have to study if they don’t want to.
Once in University, though, most students relax and have fun. It’s very difficult to get in, but very easy to graduate.