My stance:
PM > M&L >>>>> SMRPG
That's how I've always felt.
As much as I enjoyed M&L (much more for its humor and awesome translation than its gameplay, which felt like a thoroughly unbalanced version of PM1, though with a couple of new ideas), Paper Mario was really want I wanted in a SMRPG.
This new game has completely charmed me. Much more so than the original. I was very gratified to experience that it isn't as easy or as slow to start as PM. I just beat Chapter 1 and am about to start Chapter 2, and I've already cried a few times from gut-busting laughter and delight.
The gameplay. Is near perfect. Intelligent Systems put together what was arguably the most balanced RPG battle system I've ever played, in Paper Mario. And while it isn't the most fun of them all, it was VERY high up there on fun factor. They've improved it beyond my expectations here. They incorporated a couple of the neater ideas of the M&L battle system, but retained the depth and balance of PM (which M&L completely lacked), and have beefed up the exploration and "paper" element to the nth degree.
I actually laughed out loud in delight when I discovered the "false wooden fence" wall in the very first town of Rogueport. There is ALL kinds of cleverness in this game, and as soon as the debates are over, I'll be putting in at least 3 more hours tonight.
I cannot say how impressed I am with this game. I honestly thought it would feel a bit dated and too similar to its N64 predecessor, but nothing could be further than the truth.
Bowser, Prince & CPU, and Hooktail all had me crying tears. And the X-Nauts are just FANTASTIC so far. It's awesome how their leader seems so cynical and intelligent. And that X-Naut grunt he summoned. Hahahah, that entire final conversation was fucking BRILLIANT. Hahahahaha. Yes dude! Sir! Grodus! Sir, Grodus, Dude! Sir Grodus! Hahahahahahaah. WTF?