It appears the end of the year ultimatum the WBC Inc gave Japan for the end of this month has been extended. If Japan should choose to drop out the WBC would have to find another team to replace them, so Japan has until the time that the WBC identifies a replacement team to make a decision on their participation. The WBC will notify Japan when that process is complete.
The WBC Inc. is not budging from their position and the Japan players association has indicated that they would not play under the current compensation percentage. So there appears to be a stalemate. The owner of the Yomiuri Giants has critical comments to say about the United States monipolization of the event.
It would be hard for the WBC to have a tournament without the two time defending champs. It would make the tournament less viable. Whoever won the finals would always be considered a tainted champion because they never had to play Japan, especially Cuba, who has been eliminated by Japan during the last two WBC playoff rounds.