My wife and I visited a couple times recently. We didn't eat at any of the restaurants, but we saw several, and a farmer's market, as well. There was a grocery store that's pretty typical of Asian markets. It's very small, though, so it's not the kind of place where you hand-pick your lobster or anything, but if you want pocky, ramen, and ramune, you're in luck!
There were some nice gift shops. One was actually Hawaiian-themed. Hawaii has a large Japanese population, so the store was kind of a mix of the two. It had some pretty dolls, lots of T-shirts, books about Japan, games, keychains, stickers, candles, notecards, and some CDs from Hawaiian singers and from a local San Jose taiko (Japanese drum) group. Another git shop was all-Japanese. They had tons and tons of geisha dolls, dolls of royalty and the elderly, Buddha statuettes, zodiac figurines, etc. They had some pop culture magazines in Japanese if you're into J-rock, as well as Japanese cookbooks in English. They had a lot of incense, chopsticks, chopstick rests, and chopstick cases, some cute with anime-character stickers and some elegant. There's a lot of glassware there, though, so you have to consider transporting the large, heavy pieces home. They are also expensive. But I picked up lots of cute notecards and magnets shaped like fans with geisha girls on them and those were nice, lightweight souvenirs.
There is a pretty large anime shop, though it's awkward to find. We passed right by and didn't notice it until we were on the other side of the street, gazing across. You have to enter a building and find your way upstairs. They have lots of DVDs, figures, and artbooks. I think they also had manga, but only in Japanese, no translated books. They had plushes, posters, wallscrolls, trading cards, and art cells/clear files, too, the kind of things you frequently see at anime conventions, and for the same prices.
You can also find some historical points of interest. There are a couple Buddhist temples and there is also a museum dedicated to the Japanese who were interred by America during WWII. The artifacts weren't that impressive to me, personally, but the tour guide was amazing. Beware the gift shop! It's run by volunteers and they had difficulty locating items for us and even working their registers. I wouldn't look twice because it is truly more hassle than it's worth.
Overall the stores were pretty deserted. We didn't see many other tourists or shoppers about. You can find some neat things but it seems like all the locals have been around for a while; most barely had a traceable accent if any at all, so it's not the kind of place where you want to try practicing your "konnichiwas" and your "arigatous." It's an interesting experience but not nearly so authentic as you would find in San Francisco's Japan Town, where the Japanese themselves actually shop and are willing to use some basic Japanese with tourists to give them a little taste of their culture. Still, it's a little area you can tour in a day and it's pleasant.
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