Obviously the guy came to Japan just looking to be held over until his prospects looked better back home. He never intended to stay (and still really doesn't, it seems)... and his stay just kept lengthening. I've met quite a few people who this has happened to.
He mentions he tried to master Japanese, but I don't think he's being completely honest - my guess is he wasn't a very serious language student. He can probably do some decent conversation, just from years of mild study, though.
He says functionally illiterate - who knows what that means for sure. It obviously hints that he's dabbled in the written language (at the very least) and could mean as much as "can't read a newspaper without problem."
Dumping on the guy for not being literate in Japanese is a bit ridiculous. It takes a ton of motivation to force yourself through the pain of learning Kanji. I know some people love it - but for most, it is a monumental hassle and nothing more than a means to an end. I think it's very easy to see how someone could develop conversational skills in a pretty enjoyable way then completely balk at the immense amount of work required to learn Kanji.
Seeing as how Japan is so incredibly forgiving to foreigners and he didn't have any real interest in staying in Japan longterm, then his lack of studying the written language is somewhat understandable I think. It's pretty easy to listen to the overwhelming amount of people who will tell you that common knowledge is that kanji is impossible for foreigners. You give it a go and discover that yes, it is hard as hell, especially when you're rote memorizing. I've yet to meet a foreigner in Japan who has been here less than 10 years and is literate (to the point where they can just pick up about anything and read without problem).
Thinking about how illiterate people here are really makes me glad I gave Heisig a try. Literacy now seems like a goal completely attainable. I think most people are just struck by how overwhelmingly open ended the task is and never make it very far.
Then again, maybe I defend the guy because the beginning of his story hits a little too close to home for comfort.
Edited: 2009-02-18, 4:24 am