Overall a bit disappointing but then this is a collection of folk tales, which means they aren't necessarily written with the intent to impress readers' tastes, but tend more to reflect fears of people and values of society, and perhaps portray some kind of moral lessons. A lot of the stories are rather forgettable, and there is a lot repetition of the same kinds of ideas. Lots of samurai's (or others) pine away, frequently unto death, because of losing a love, something that has some kind of romantic factor, but usually just strikes me as overly dramatic and silly. Lots of deception, usually by women (yes it is quite sexist), who turn out to be ghosts, goblins, or other mythical creatures.
one of the recurring ideas was a person experiencing some kind of supernatural event, and then being forbidden to speak of it to anyone. There's this pervasive emphasis on holding to a vow, even when it was made without consent, and having a severe punishment for failing to keep a secret, which makes me think there was something deep in the Japanese culture that valued that kind of secrecy even when it did great harm. Certainly there are plenty of examples of the same kinds of loyalty behavior in other cultures as well, but the expression here seemed distinctly Asian.
Hearn is best when he is just relaying the stories, and when he delves in psychology, he pretty much goes off the rails into unsubstantiated speculation. The opening quote is quite annoying as it reveals his inability to understand that not everyone thinks like he does. Some of us truly do not believe in ghosts, and it is not because we are lying to ourselves. When I was a kid, I believed in all sorts of things, including ghosts, but as I learned more about how our brains works, and learned about things like hypnogogic and hypnopompic hallucinations, the fear was replaced with understanding, and the beliefs evaporated. Hearn had a bit of unexamined arrogance in his own viewpoints.
I did like the stories where heads got ripped off by the "ghosts" and the Japanese style of ghouls, or goblins, who necks can elongate, or whose heads can detach and float off to feed is pretty cool. So there were enough bits to keep me satisfied.