Heh, I like it. A bit silly, but very original. I'm imagining steampunk armored Civil War-era soldiers fighting Shao-Lin monks and spirits. Nice!
Very original! I don't know if the historical aspects are 100% accurate or not, though comments would make it seem they are not, but it is a game system, and most people won't know the details anyway other than what you tell them. Either we can fix the errors, or we can just roll with the inaccuracies and explain them away through more creative language in the setting explanation: "In this world..." or "Due to the subtle actions of the kami, history was changed and x happened before y..."
I have some fun ideas bouncing around from this. Samurai Jack with spirit powers vs cannonblade/katana-wielding American and Japanese soldiers. You could even throw in a precursor to a tank and somesuch. Not to mention clockwork soldiers! Whee!!
Well-written, clear and while it would seem not as historically accurate as some would hope, the potentials do come across. Nice effort!

Comments
Schizophrenic much?
;)
Meijipunk is terrible!
Whoever wrote this tripe has no idea what he's talking about. I know way more about Japanese history and he got everything wrong. I don't know if I would rather play in this setting or chew glass.
Meijipunk is amazing!
This is the greatest setting ever! I am not biased, even though I wrote it up.