I thought it looked pretty good. I'm also not seeing any heavily fanservicey designs, so I might just pick this up when it comes out.
As for the town, yeah, it is what it is. Falcom struggled to get basically every Sen no Kiseki game running without major slowdown, so it's not a surprise that they would fail to put more NPCs on the map.
jett Falcom was basically producing PS1 JRPGs up until 2010, complete with low resolution sprites on low geometry backgrounds. They moved to 3D with Ys SEVEN, but it was a real struggle for them to get the Kiseki series up to speed. They've since created models that now look comparable to that from the Tales series in Sen III & IV, but they really struggle with performance. Whatever they're doing is just not efficient, and perhaps it's that lack of know how that's contributing here.
They're also releasing games at a pace they should not be releasing them at, with a volume level that is absurd for the modern era. They should actually cut their games back, or at least the Kiseki series. The degree of sacrifices that they're making just don't seem to be worth it.
They didn't use an internal engine for Sen I and II. I'd imagine III and IV are the same.