I think it is good for Japan. Hatoyama and especially his radical leftist coalition partner, Socialist Party of Japan, tried to jerk the cornerstone of Japanese national security. It is not the main reason Japanese voters elected them. They are more interested in rooting out corruption, and replacing hapless ineffective leadership of Liberal Democrats. They failed to decisively act on pension problem and economic problems in general.
However, Hatoyama ended up giving wrong agenda too much focus. I think Japanese electorates were seriously unsettled. He did not make much headway in tackling daunting economic problem, either.