Well, now that I started Chapter 8 (doing guard duty) and doing a few sidequests and fighting in the Arena ten times without dying, the game is starting to grow on me. I set it to manual so I feel like I'm actually doing something, and I'm using the CCP.
The characters seem cheery and happy, and this Lisa chick is kinda interesting as well. It's pretty damn obvious who she is, though. I blame the art book.
The graphics strive for a bit more realism than Xenoblade, and pulls it off, arguably. I do like that the City feels more real than any town or city in Xenoblade, but the game feels blurry and the framerate isn't too good at times. However, this can be blamed on the platform. I bet that if this was on an HD console it'd probably pull it off better.
I gotta say though, my first three hours in Xenoblade is much better than my first three hours in The Last Story. I'm just waiting for the plot to start picking up like Xenoblade's did.