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2.) Very few now, there was a concerted effort by the Allies to stamp it out after the invasion of Japan. The Japanese emperor also played a part in that when he admitted he was neither a god nor the 124Th descendant of the Sun, just before he authorized Japan's surrender.
3.) Japan, or at least until 1946 anyway. I'm sure there are some people somewhere who still practice it. Yukio Mishima lived until the 1970s, before he committed spiky.
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