It took me a while to figure it out as well. I first started watching it expecting a horror series. As I watched it, I became disillusioned into believing that the Japanese people were either incredibly easy to scare, or it was only horror aimed at small children. It didn't make sense, sure, but then it just kind of clicked, and found myself enjoying the series a million times more.
I haven't really watched Mitsuganae beyond a few episodes, unfortunately. Enma in a bee costume was entertaining, though, so it will probably be my next go-to series when I'm not in the mood for comedy.
So, yeah, its best to go in realizing that it isn't horror so much as a personality study on hate. I guess that would be a good explanation.
George Carlin wrote:
I think it’s the duty of the comedian to find out where the line is drawn and cross it deliberately.