Have you ever tried to read The Tale of Genji in its original form (hiragana)? It may be because it's written in centuries-old Japanese, but it's a bitch to read even when translated to the modern equivalent. Try parsing a modern Japanese article from kanji/kana to all-hiragana and you'll start to see parsing issues because now you can't distinguish words from particles. For that matter, fire up your IME and put in a commonly-used word, like seishiki or kenshou-- you'll see several possible distinct words in kanji, so right there you've got another problem.
I take it you haven't lived very much in Japan-- if you try to change the society there to excise kanji from the language, I guarantee you that nothing will change for generations, even if the government mandates it; the best you'll see is a few puzzled looks, and at worst you'll be treated like a lunatic. There's simply too much invested in kanji, and the creative use of kanji is only increasing. Take, for example, Bleach-- the word bankai as written in the manga exists nowhere else in Japanese, cannot be understood without the context of the manga or the accompanying kanji, and represents a newly invented word that is starting to see common use. Heck, many manga are pairing kanji with unusual or ironic readings to enrich the meaning of the dialogue. One can call that abuse of kanji, or artistic discretion, but either way, killing off kanji would force the manga writers to abandon that route of expression or ignore the mandate. Guess which one they'll pick?
I submit that (1) your conclusion is flawed because human language (context-sensitive) is inherently poorly-compatible with machine language (context-free), (2) you are imposing an unrealistic expectation on a language that is far more complex than its syllabary, and (3) the half-assed "script reform" that was done because of a stupid panic attack when typewriters (and American occupation) were introduced is far more responsible for the mess than any traditionalist influences in that culture.
Now, the apparent inability of the Japanese to learn proper English decades after its educational ministry imposed a requirement from primary school is another can of whup-ass that both of us would doubtless love to dish out to the language council... Even though it's a fully-operational part of the world society, they are still way too insular in this respect.