Everything is pretty much the way I expected it, so I'm pretty torn on the issue.
I was expecting the transition to an action based system, however it does seem to be going the route that my insider suggested it would, with attacks being real-time, and the commands only being accessible once the "ATB"/attack gauge powers up - which to my mind is better than the other action system alternatives
Also, it seems that characters will have more personalized skills besides the limit breaks. Cloud's braver attack, and Barret's big shot have been reduced to regular power attacks accessible when the ATB fills up rather than actual limits (the limit bar is never charged during any of the attacks, and the attacks lack any sort of consistent signifying charge up, like the original limit break).
Character swapping is retained as well.
So, although it will certainly be a game with its share of hacking and slashing, it might actually be able to retain some semblance of the original strategy of the older games (if the can get the A.I right that is).
So in conclusion, I think the game-play looks okay. Nothing special, but not horrible either.
I actually welcome the new 3D camera set-up and the exploration aspect, since that will add to our ability to experience more of the world in a new way, and you can still retain the cinematic camera angles in events and cut-scenes in either case.
The bigger issue, which I am surprised more people haven't picked up on, is how an action system without transitional battles is going to effect world-design, enemy model count, and the more large-scale battles of the original.
There are just so many areas in the original game and boss encounters that don't lend themselves well to an action based system where battles take place in the same environment as the exploration. Also, now they're going to have to create much more extensive animations and A.I scripts for the various enemies, meaning we're likely to see a large cut-down in enemy model count - so get prepared to hack through hundreds of Soldier grunts and whatever ad nauseum.
My biggest issue here is probably the style.
Don't get my wrong though, I already knew they were going to go the realistic route, but seriously though - this Cloud looks so stupid it hurts my eyes. How is it they can fail to make Cloud look good right after the new Dissidia game managed to make him look at least half-way decent and, Smash Bros made him look completely awesome?
When he's in motion, and the details are blurred he looks okay, but seriously, when you get the opportunity to absorb the details in still scenes, he looks retarded.
The hair looks like one of those cheap greasy wigs that Cloud cos-players tend to use, his face is creepy as hell, and his arms and wrists are so skinny it looks like he's suffering from some sort of eating disorder.
Barret looks like Wesley Snipes, nuff said.
This is extremely grating to me, since Biggs and Jessie look really good. How is it that two minor support characters have better models than the actual main cast characters?
It's insane - I'm pretty much an FF7 purist, still I can learn to live with almost everything in this trailer and play and enjoy this game for what it is - but that Cloud model just completely messes with my mind. I don't want to spend 40+ hours looking at that freakishly ugly mug and that weird god damn hair. I'd even prefer the AC or CC model to whatever that's supposed to be.