It was a very even match, but I think Japan deserved the win in the end, for the attitude with wich they played. But they didn't dominate, in fact, during the 1st half it was Korea who had the upper hand and they could've finished the game. Korea just kept missing too many chances and Japan had the merit of making the right changes to grab the win.
Although I'm a big fan of japanese football, being portuguese gives me enough emotional distance to realise this. It's easy to see that Nakayama exaggerates, but that's comprehensible, because between these two countries there is a HUGE rivalry, just like Portugal-Spain or Brazil-Argentina.
About Japan being better in football than Korea, that's also very debatable, of course. I think we must admit that Korea has a longer and richer footballing history and that they clearly have reached greater things than Japan. But I also think it is true that in the 90's Japan has developed greatly and produced excellent generations of players, one after the others. If you also look at the Asian Cup, you'll see that in the last decade Japan has won 2 editions (1992 and 2000), while Korea didn't win a single one.
Just to sum it up: both Japan and Korea are two very strong footballing countries. They have developed very much and shown the great possibilities that Asia has in the sports future. But they have different characteristics and styles, hard to compare. In some aspects one is better, in others, the other one is. In my opinion, Korea is still stronger as a unit, as a team, but Japan has better individual talent.
Anyway, hope that Asian football continues its progression, as well as African, cause that brings more competitiveness and higher quality to this beautiful and global sport.
P.S. GO JAPAN!!!
(can't hide my preference)