Japanese Society

Japan's a weird one. No one is capable of speaking English, even the young generation. Japan is also very modernised but still very traditional at the same time

A few quotes from the old 1974 film 'Yakuza' -

Harry Kilmer: Everywhere I look, I can't recognise a thing.
Oliver Wheat: It's still there. Farmers in the countryside may watch TV from their tatami mats and you can't see Fuji through the smog, but don't let it fool you. It's still Japan and the Japanese are still Japanese.

As for your view that no one is capable of speaking English in Japan. You have to understand that Japanese people have a least six years of English learning at high school and then may study English at university afterward. Try going up to someone in Japan and say 'Hey, do you speak English?' and when they don't reply this doesn't mean they can't speak it, maybe they are worried they will make mistakes or their accent is off a bit. If you are talking about the English ability of Japanese then that varies from only a few words up to being proficient speakers. Some Japanese have studied English past high school, they may need English for their job or might have studied overseas in the past.

Perhaps the issue to look at is how English is taught in schools in Japan with it's focus on grammar, rote learning and exam passing over a system which gives more of a balance to speaking/listening practice.