I watched the preview on Gametrailers for this game and I have to say, I went from zero to about 100 hype within a minute.
The story seems fairly interesting (keep in mind JRPG plotlines are NOT my thing), and the combat is perhaps the most intuitive and interesting thing I've ever seen. Instead of traversing boards or diagrams and collecting skills and "legendary weapons," you gather monsters' souls, which you use to either, depending on the character, summon and attack enemies or bludgeon your enemies as a weapon.
Now, the fact that you can use two completely different characters with two different mechanics excites me, because I think I've just about NEVER seen this concept played out in ANY RPG. Additionally, the graphics are smooth, lush, and attractive, with particle effects galore and interesting looking monster designs that are both vibrant and diverse. Additionally, the dialogue doesn't look nearly as crappy as half of the Japanese games making it to the states (Final Fantasy and Ninja Gaiden, I'm looking at you).
Plus, it has some extremely cool Sixaxis support that rivals Lair in sheer coolness. To power up your various skills and summons, you suck the souls out of your enemies via pulling them with the Sixaxis.
Yeah, this game looks frackin' sweet and I'm looking forward to it more than Final Fantasy, if you can believe that.
Here's the video: http://download.gametrailers.com/gt_vault/t_folklore_vp_gt_h264.mov
What's more, this revitalizes my faith in Playstation 3's exclusive first party offerings. Diversity, here we come.
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