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Or used as target practice. The US built an a air strip on Tern Island at French Frigate shoals after Midway as an emergency field for planes flying between Midway and Hawaii. Perhaps another island could have held a larger airfield. The US has a much greater capability to mount attacks (ship bombardments and airstrikes) than the Japanese do to repair damage and resupply. Sort of a reverse Guadalcanal but with the US holding a lot more advantages.Midway was logistically unsupportable for the Japanese and was quite useful to the US, but not critical, much like Wake, could be left to rot.
Back to Midway... The Japanese could probably have still taken the field as it were, the US carriers were not really much of a threat after the battle. Despite their tendency to make heroic almost suicidal charges, the Japanese showed examples of what we called in my climbing days of being "Pysched out" and snatching defeat from the jaws of victory. US Grant might get "whooped" but he didn't skull off the battlefield as was the tradition. In the morning he was still there.
Midway was logistically unsupportable for the Japanese and was quite useful to the US, but not critical, much like Wake, could be left to rot.
As to your question on whether the Japanese were discounting the danger that this sighting meant based on the previous American attacks, you may very well be correct. There was much discussion at certain levels of the IJN regarding American doctrine, equipment and training and none of it was flattering. I think there was a certain element pervasive in the Japanese Navy at the time, that held American training, equipment etc. with more than just a little bit of contempt.
Part of that contempt that morning was probably being borne out by the uncoordinated and almost haphazard attacks that had been thrown at them by the Americans, not realizing that they were just that, haphazard. No B-26 crew had been trained to drop torpedoes, Henderson's boys were green as can be, no coordination between any of the incoming attackers etc. For all they knew, that was the best the U.S. had to throw at them, so perhaps there was a bit of feeling that even if the ten ships included carriers... so what? They may have figured they could deal with whatever TF 16 & 17 could throw at them, come out fine, and then deal a crushing blow on the American ships. Reading what some of the officers had to say leading up to Midway leaves no doubt to me they didn't think the U. S. was very good and that they were so much better than the Americans that the battle and the war was all but won.
I thought it significant that Yamamoto and his team thought they had to come up with a plan to coax the U.S.N. into a battle, never even dreaming that in fact, the U. S. Navy was SPOILING for a fight. Talk about totally misreading your opponent.
I doubt they realized what they were actually up against right up until 10:20 a.m.
The IJN was fixated on enemy warships rather than commerce. More on the great battle than attritional war, ironic as the loss of commerce ships caused major problems for the Japanese themselves.There are 2 battles top of my head where the IJN had advantage but didn't push.
Battle of Samar and Battle of Savo Island. But all in hindsight where we know every fact and decision.
25mm is a compromise calibre even in aircraft it never found favor. Not effectively better than 20mm but less rounds and velocity. Even the USN gave up on its chosen 1.1" (28mm) AAA very early. How much Seamans AAA training and regular practice USN and IJN had would be something really interesting to knowThe main issue was reliance on the 25mm which was at best average and at worst awful.