Hmmm....despite only being here for six years, in that time I have seen way too many foreigners (and friends) come and go. There are lots of reasons people leave Japan, but perhaps one of the most common reason is career prospects. Usually after a couple of years teaching English, people start to wonder..."is this something I want to be doing for the rest of my life? For most the answer is a definite no. The advancing years don't help - as most of the foreigners teaching English are in their twenties - usually fresh outa Uni and in the prime of their lives. The pressure is on to get the career ball rolling...
Together these combine to produce a sense of uncertantity about the future. I've been through it myself. Then you've got the dreaded "familiarity sydrome" setting it....fresh off the boat, for the first year or so being in Japan is like a rollercoaster ride of discovery. Everything is new and exciting, but as time passes you're able to see more of the "real Japan". The Japan that few tourists get to see. The realities of day to day living. And like EVERY country in the world there's lots of downsides....lots of things we hate and wish they were different. Inevitably comparisons are made with ones home country, and while for most the outcome is in Japans favor, I find that with time people's perceptions (and they're "Rose colored glasses") tend to change. It's funny...I know several people who gone from "Japan is the most awesome place to live in the world" to "I hate this fcuking country" is the space of 2 years....
Maybe much of it is brought about because they just they miss their home country.
Anways, enough of this waffle. Justin mate, no one on here can tell you what to do, but I will say think long and hard about going back to Aus. Yeah, sure for those of us that have been here a while there have surfaced many things to dislike about Japan. But at the same time, the grass is not always greener on the other side. Think back to way you first came here....has your situation changed that much? Will you be happier back home?
And if you do decide to stay, good luck. While it does sound (reading your posts) that the school you're working for is now on shaky ground, there are many other opportunities out there...all you gotta do is look
Dave
(living in Japan, married, 2 kids, just brought land, built a house and gonna be here for a very, very long time )