There's quite a bit of character development but as Skyblade pointed out, get ready to watch a muted version of many of the characters personal stories. I've also heard SE cranked up the angst in the game so get ready to see WoL and Firionel act like Cloud and Squall.

The villains are easily the most interesting group though, their scenes with their massive egos and plotting is actually pretty awesome. They have way more going on as they "work together" so they can backstab each other later. Kuja and Ultemacia supposedly have some strong moments as well as Sephiroth and Golbez.

The heroes come off a bit boring except for Bartz and Zidane. Though Squall's is also quite amusing if a bit sappy towards the end. Its still amusing to see how well everyone gets along with each. The spike in Cloud<3Terra fan fiction has me wondering what goes on between those two.