This is a shift away from pragmatism; pragmatism would be acknowledging Japan's economic need for immigration.

Whether Europe or North America have a problem with too much immigration and not enough integration is debatable, maybe - and I suspect that's where your perspective comes from - but Japan decidedly does not (maybe too much tourism, and I feel at least some of the antagonism towards foreigners comes from that, but no matter). Immigrants still make up a very small percentage of the population, mostly in Tokyo; given the existing challenges with immigration, they tend to be extremely diligent, respectful, appreciative of Japanese culture, and hard-working.

This is just a populist conservative government pandering to the some of the worst aspects in society to distract from their failures.

I’d say having a wealth and language filter is pragmatism.

Pragmatism could just as easily be a decision by the public collectively to have more babies. There’s nothing about immigration that makes it inherently pragmatic. It could be, with the agreement of the electorate, away to compensate for the electorates decisions to have fewer babies. But it’s not up for us outside of Japan to lecture them on whether or not they are being consistent on this.

What's pragmatic depends on your values.