Interestingly, a close analogy, hate speech, is perfectly legal in the United States. It looks like laws to ban hate speech have been found unconstitutionally. This is in contrast to most of the other countries around the world.

United States values freedom of speech much, much more than any other country around the world does. Both fortunately and unfortunately. I'd expect most of the rest of the world to follow what Japan is trying to do here, or something close.

I don't know how I feel about this personally. I completely agree with you - but defending free speech is hard. When an extremely popular and influential person says (but not threateningly) that you/your family are not entitled to exist and live freely, when your country is not entitled to exist, would you support that persons right to say that?

Bullying is different though. If narrow/specific enough, causing mental and emotional distress online, must have the same level of punishment as it does when it's done in the real world.