It is becoming a bit easier to express individuality in Japan, but that definitely does not apply to most people working a corporate job. Any given picture of a crowded Japanese street that indicates rush hour will have a bunch of people in suits/etc with standard hair. Off hours or in the bigger cities there might be a more interesting sample.

There is brown however, so the meme is still technically inaccurate.

Yeah, it looks very much like that picture, at least in any crowd I've seen. Japanese society is pretty uptight about visually standing out too much. It's all relegated to specific locations or events. Comiket is one example, because the many attending cosplayers are impossible to spot outside of the actual location (unless you count their luggage). Compared to similar events in europe, most of which are way smaller, you'll see extravagantly dressed people with bright hair colors in a large radius and on public transport.