Yep, I think it's time Japan got over it's "yellow guilt" and denial about it's past and formed it's own real standing army (not the JSDF). Think about it in a couple of ways, the big construction and shipping players would get a bunch of business starting to produce high end arms (ships, planes, etc. - no reason to buy American when you've got Mitsubishi, Kawasaki, and Sumitomo).
Additionally think of all the young kids you could put to work by putting in a mandatory conscription for a few years. And then watch what happens when you get all those young men and women away from mom and dad and around each other 24x7...
Besides, it would give Korea and China something to really ***** about.