When I first learned to answer the phone, I said, Mushi, Mushi instead of Moshi, Moshi. I was saying, "Insect, insect."
Actually, the middle of a room thing is quite rare. I don't remember ever seeing it, in fact. However, the "squattie potties" are real. However, they are always in a cubicle like a regular toilet. Also, usually the cubicle will have a sign if it's a Western style one, and almost all public bathrooms have one of those. ;)