I really love the new character models. I like that they look more painterly and less exaggerated than XBC2. As it is, I think this remaster is looking gorgeous. I can accept the limitations because this a goddamn big-ass game - think about all those huge environments and that long, sweeping story. It won't have been a small job. As someone else has said, the limitations might also mean that whatever new projects are in the works at Monolith Soft aren't too far away.
Anyway, I really can't wait to get this. Xenoblade came out just as I was developing a real fascination with JRPGs, and I only ever had the time to get through it once. I've always wanted to go back to it and now I can go back to it in the form of a gorgeous remaster on my favourite system.