I have finished the fight with the Flying Fox, and I absolutely love the game so far. It's everything I was hoping it would be and more.
One thing I can say about the combat in the game is that even though it lacks the razor sharp precision of combat from NG, it has achieved something better than any game of this kind in my opinion - the way your sword connects with the enemies, and the way they react to it, is immensely satisfactory. In all these games so far, there was always the feeling that the animation resulting from the weapon impact was pre-canned. Not so here. Enemies bounce away just the way you'd expect them to when hit with a massive sword, and when they block your hit that resulted from your running/jumping downward slash which occurs when you start attacking an opponent that is a bit further away from you (and which btw. is one animation that makes your moveset), it somehow feels like they really barely managed to block.
This kind of relation between characters/environment/weapon impact is something that this game does better than anything else in this genre, and I don't think it got nearly as much credit for it as it should have. It's just really satisfactory to slash through those bastards, especially listening to their smart-ass comments that soon turn into cries of agony or regret that they joined Bohan's army.
The acting, voiceovers, cutscenes, and the main selection menu are without question better than anything else I've seen in a game. Hell, the whole graphics package is amazing - those TV photos posted earlier won't prepare you for seeing those waterfalls animated, or the stream of thousands of army men running through the field and over the frozen river while you cannonball them into nothingness from the wall above. I know it's too early to give it such high praise, but I honestly think that so far the overall graphics are more impressive than in anything released yet, and framerate doesn't dip nearly enough to make it, at least for me, any less impressive. One thing's for sure - there's nothing of this caliber of production quality or ambition on PS3, it's one of the few games out now that feels truly, honestly, next-gen, whatever to hell that means.
On a downside, there are some small glitches, like an occasional but rare audio glitch/skip or the stuttering during some cutscenes while the game loads. I hope there's a patch to fix this later on. Also, I've seen early in the game one lipsync that was approx 0.5s behind the voiceover (when Nariko talks after the short intro battle), but it hasn't happened since.