As a Xenosaga fanatic, my extremely biased opinion says it's awesome. Episode II was the weak link, but that doesn't mean I didn't enjoy it a lot. I actually liked its battle system better than the first, but I seem to be on a lone branch with that one. I wish there was more plot in it though. Soraya Saga, who was pretty much the main writer before they more-or-less fired her, even listed all the things they cut out before Namco made her take it off her website (it was a hella lot).

My big hint for Episode II: Use MOMO or Shion, one or the other (MOMO is the better choice gameplay-wise). People think they suck, but they are the only ones capable of truly hurting some enemies.