This is what happens when the original creators quit.
What seems to have happened after the staff shake-up saddened me. Here is a game that had so much potential to live up to a wonderful prequel, but didn't go in the right direction. Confounding and aggravating game mechanics, topped off by a battle system that is at best confusing and at worst the most destructive meshing of combo systems and replaceable characters in the RPG genre right now, the fun in this sequel is limited to only the hardcore Xenosaga fans. Being one myself, I soldiered on for another four hours before realizing the utter pointlessness of what I was doing.
To put it very bluntly, this game is just not very fun. It's a shame to say that, because the graphics are greatly improved and the music is ambient enough to be able to ignore or take in at the player's discretion. Cut-scenes are still lengthy, but continue to tell the same impressive story that makes the player forgive the length of the movie-within-a-game that is being observed. That battle system, however, is absolutely unforgivable and drains any enjoyment from the experience.
Not all of the modifications in Episode 2 were for the worst. The player will immediately notice a strange break from RPG convention: no shops, weapons or items to buy. This is remedied by the fact that items are plentiful and easily stolen from enemies in battle. The problem is that you will most likely not survive even the most routine battles between bosses, as basic enemies seem to have the amazing ability to lay waste to your party with barrages of self-boosting and spread attacks.
Oh, the dream that could have been.