I finished chapter 3. The game is good enough to be worth the time, but far from as good as advertised. Your list of features happens to provide a convenient format for criticism, so I'll discuss each point.
1. An epic, emotionally stirring story involving love, hate, war, peace, enmity, redemption and
The story is interesting enough and turned out to be fairly unpredictable. However, it also contains padding, like having to delay the main quest in order to slay a fearsome beast. Further, the game could have done a better job a showing and not just telling. For example, war is a big theme as advertised, but the feeling that a war is imminent isn't really there. I'm told by various NPCs that a war is about to break out, but nothing about the game actually conveys that feeling. I know "show, don't tell" is often hard to pull off, but I have seen it done.
2. An involving repetoire of quests which are more than simply going to a dungeon and defeating
a monster. Quests in Legionwood require forethought, planning and lots of effort, spanning
entire nations, continents or the whole world.
I haven't really seen those kind of quests. I admit I may have missed them though, I did not talk to every NPC, just most of them.
3. 6 unique and complex characters, each with their own story and striking personality, each one
able to utilize over 60 awesome abilities, wield over 80 fiersome weapons, and each with their
own repetoire of unique and unimaginable powerful Frenzy attacks.
The characters do have their personalities, but they aren't really that striking. Lann and Ark gets quite a lot of spotlight. Liara manages to show quite a bit of personality early in the game, but as more characters join, she takes a backseat role. The other female characters does voice their desires when they join, but after that pretty much say things anyone could have said. The Frenzy attacks also haven't been that powerful.
4. Riveting, tense, turn based combat utilizing the popular Turn Based Side View battle system in
which emphasis is placed on tactics. Every enemy has it's own attack pattern, weaknesses and
strong points, and you'll need to think at the beggining of each round rather than just clicking the attack
This isn't true at all. Physical characters can safely use Double Strike and magical characters just need to figure out the elemental weaknesses of the enemies and then they to spam the same skill over and over. Heal as needed. Nothing I haven't seen already.
5. An epic custom soundtrack composed entirely of non game music, including some never before
heard pieces by Dark Gaia exclusive to this game!
I liked the music, so good job here.
6. Fantastic mapping and graphical prowess...
It's more in line of OK then Fantastic. It looks rather bland. That said, dungeon layout is rather good and requires some exploring to get everything, but doesn't give me the feeling I'm wasting a lot of time going off track.
7. A huge array of 48 custom RGGS2 scripts, by renowned scripters such as KGC and Woratana,
with innovative custom features such as...
Is the party changer system really a script? It looks evented to me. You use an item to enter the party changer menu which looks very much like the standard dialog box and from there make your changes. Also, while I'm getting the feeling you're not supposed to, you can add a fifth party member.
8. Amazing potential for character development. Rather than assigning each of the characters a
class, in Legionwood, the characters can wield whatever equipment and learn whatever
skills they want to, so that you can mould each one to suit your own intended fighting style.
Also, this is combined with the fantastic open ended AP Assignment stat moulding system by KGC.
So far the winning strategy seems to be to first determine whether a character should be be physical or magical and then only spend on defense and attack/intelligence for physical/magical characters respectively. All other stats can safely be skipped. As the game went on, battles became easier and easier, so I'm getting the feeling my strategy is making me overpowered. The impact those three stats have one damage done and damage received is probably to big for the sake of balance. Also, the characters cannot wield whatever equipment they want to, most equipment pieces are barred to some characters.