It does seem the Japanese lost heart when their objectives and a victory were close.
Does seem strange from a culture that puts honour and therefore failure above all other things: suicide was an option. Perhaps succeeding too well is seen as wrong! Or did they believe after all their careful planning(Pearl and the other lightning victories) that they could not really have won so easily and that somehow things would change? Did they believe in Khama?
Back to your question: I like the idea that they could capture Australia( A&A does that to you!)
At heart I am a defensive player, so I will go with my heart.
Your suggestion of cosolidating on the Solomons at Rabaul and supporting the fleet with ground based fighters makes most sense, as we know they could not replace and, therefore, rely on their superb carrier units.





