I got my copy of Blue Dragon yesterday. So far, it's pretty good. Definitely high production values, although I personally find the art style (especially the way the main characters are drawn) to be rather off-putting. Everyone looks like a Precious Moments figurine. But aside from that, the graphics are very good. It's hard to tell the rendered cut scenes from the action that you control, and I mean that in a good way.
I've only played about an hour and a half so far, so I'm still just getting into the meat of the combat, magic and skill system. I don't really think it does anything revolutionary, but that's not necessarily a bad thing. It's a very competent Japanese RPG with a few new twists. Actually, come to think of it, this is the first next-gen Japanese RPG that I've played (well, aside from Spectral Force 3, but that's a tactical RPG and it has rather low production values). In fact, Blue Dragon is probably the first honest-to-goodness Japanese next-gen RPG ever (I never played Enchanted Arms, so I can't really comment on that). Ironic that it should show up on the Xbox 360.