Ok, screw my last post in the XS2 topic, I decided to play Xenosaga 3 now. =) I just finished the E.S. battle against Margulis, and then I saved my game.
So far, the battles are much quicker and smoother than the Xenosaga 2 battles. And I'm really enjoying them to the point where I actually look for random enemies. I also try to get the Finish Strike bonus on every battle I fight, including boss fights. =) I havent gotten any new equipment other than what came with my Clear File bonus, but it's great that equipment is in this game nonetheless.
I have a semi-understanding of what's going on right now in the story, but I admit, I didn't finish Missing Year yet. But if someone's willing to fill me in on what happened during that part, that'd really help. So far, it seems that Rennes-le-Chateau is the Ormus' homeland and has great value to what's going on in the plot. It also looks like Jr and company are about to land there to investigate. Shion's heading to Fifth Jerusalem to meet up with Allen and KOS-MOS. And supposedly Vector's beginning a new project for a new battle android (T-Elos, perhaps?).
All in all, I haven't played enough of it yet to have a fully concrete opinion, but it looks like a definite improvement over the alleged "bad" Xenosaga 2. Can't wait to play more. =)