I don't think it is entirely fair to say that I'm unhappy with any changes or that I had overly specific expectations. I do like a handful of things about it, such as the trials, optional objectives, character sound profiles, etc. The things I'm complaining about are not improvements (with the exception of music, which is, as you've said, subjective). They take away from Peggle 1's momentum for no reason.
-a smaller cast (possibly to cash in with DLC characters later) is not an improvement
-slower, clunkier gameplay (shot lag, poor design choices already mentioned) is not an improvement
These aren't just changes, but steps backward, and that's why I am unsatisfied with Peggle 2.
First you say that there are less masters because there is a greater focus on them this time around (costumes, animations, sounds). But then you go on to say that the masters only provide a smidge of variety and that they're a tiny part of the Peggle experience. So why, then, are they given so much more attention this time around? Given more screen real-estate? And why do I have to sit through the goat chatterings or flashing teddy-bear lightning over and over again?
At the core, people love Peggle because of the gameplay. So, at the core, what's the point of choosing a character? For the power they provide! Peggle 2 offers less characters, but offers things such as costumes and animations. So this means that gameplay-wise, Peggle 2 offers much less variety and choice and instead gives us filler and fluff.
Are you honestly happy with the direction they took regarding masters? You'd rather have costumes and animations on an underwhelming cast, instead of more playable characters? For me, the only likable things about the cast include Berg and Luna's powers and the idea that Jeff (?) is The Dude from The Big Lebowski.
I hope that this doesn't come off as argumentative - I'm just trying to get my points across. I think that they're valid!
I don't expect Peggle 2 to be Peggle 1, but I do expect a sequel to meet or exceed the first game. Peggle 2 takes steps backward on some mechanics and the amount of playable characters.