I've spent several summers in Iwakuni, and also traveled there in fall, winter, and summer. It's one of my favorite places in Japan.
「I've seen previous posts on this forum about insects (giant hornets and mukades are the main ones I'm concerned about).」 Iwakuni's bug situation isn't significantly different from the one in other parts of Japan. You'll encounter the most bugs in summer - mosquitoes and cicadas in summer, and cockroaches if you don't clean regularly. Nothing too dramatic or dangerous, though.
「 I don't like rural areas in my home country, so I definitely wouldn't ever consider staying in a rural area. 」 Iwakuni is kind of unusual in that it has a population of about 100,000, but still feels like a small town in many ways. In that part of Japan, most of the development is in a fairly narrow corridor of flat land between the ocean and the mountains, so if you go just a little bit inland, it gets very rural very quickly. Iwakuni itself has all that you'll need for daily necessities and basic shopping, but it's a little light on nightlife/modern entertainment options.
Hiroshima is 50 minutes north of Iwakuni on the train, and feels like a very large town.
「Any stores like Walmart in Iwakuni? If so, please drop some names of the stores. 」 There's a Yume Town store across the street from Minami Iwakuni Station, which sells clothing, interior and kitchen goods, groceries, etc.
「Should I expect things like typhoons, monsoons, and tsunamis?」 Iwkuni's coast is on what's called the Seto Inland sea, which means you'll be on the opposite side of the mainland from where the biggest storms come up from the southwest. You can expect the occasional windy thunderstorm in the summer, but in general Iwakuni doesn't get many typhoons of the size/strength that pose a threat to residents' safety.
「Things to do?」 Iwakuni is famous for its historic Kintaikyo Bridge, preserved samurai quarter, and castle, all of which are nice an picturesque. If you like hiking, there are also several options for day hikes (i.e. no need to stay overnight in a campground) - Mikradake (a few stops north of Iwakuni on the train) is pretty nice.
Half-way between Iwakuni and Hiroshima is Miyajima, one of the most beautiful places in Japan, which is filled with temples, shrines, mountain cable cars, and tame deer.
Hiroshima has tons of shopping and dining options that are doable for a day trip or even a night out.
「 Restaurants (and are the menus in English?」 While not all restaurants have them, your odds of finding English-language menus in Iwakuni are better than in other Japanese towns of similar size. There's a U.S. military base in Iwakuni, and as a result of all the English-speakers in the community, many (though not all) restaurants have English menus. However, the English menus usually don't get updated as often as the Japanese ones, so the more Japanese you can read/speak, the more seasonal specials you'll be able to enjoy.
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