Everyone who currently has a carryover balance is getting paid out, so I don't see how that would help costs during a layoff unless that layoff is 6+ months out.
Personally I carry a balance of close to 4 weeks (my current max accrual) as an extra cushion for job-changes or a rainy day and they will pay me out for it. I'll stick that in my emergency fund and it will serve the same function.
Japan has had issues with finding workers to support their elderly population. No, it isn't a bad place. But yes, there are issues to solve that come with an aging population and a shrinking population.