"Culture" can come at a cost
The "potentially scary moment" when the child imagines people turning into demons will be very disturbing to any seven or eight year old. It should be mentioned that it's his mom that flashes suddenly into a demon. It was not clear to me, in the story line, the was hallucinating, and to expect a child to get that is short-sighted.
My wife and her friend took our kids, and when I asked them how they liked the movie two days later, all three-kids started talking in agitated manner about the demon-mom scene. That's two 8 year olds and a 6 year old. As for my level-headed 13 year old, she said, "I liked it but it was confusing."
Another scene in which the child is lost in a large Tokyo train station and fights to stay off the similarly demonic "Train to Loneliness" is wrenching. Now, by the end of the film, we find that the film's message is essentially, "You're parents a flawed and often inattentive, but they're really ok," which is fine. However, this is rendered with nothing near the power of the problematic scenes. The final scene may assuage parents, but not the kids.