ALfheim Online was well thought out due to how to devise a great game system to make it differ from SAO, as well as the various different races and traits there, and their territorial struggle, as well as making its tower difficult to traverse, in addition to making the story still as suspenseful as a death game of sorts. Character interactions felt more believable with teary moments being that way and just imagining the pain of not being able to win the heart of one so near due to relationship developing outside of an area you had control over, it was painful.
I agree with you re: Sugu's feelings, at least (though not Kirito because he's a dunce), but I got none of that stuff out of the setting of Alfheim, at least as portrayed in the show. In-show how seriously characters take the game and its internal fiction is heavily undermined by the fact that it's far more apparent that it is just a game to the majority of players. Alfheim being a game to most of its inhabitants should've been played up more, but instead it was treated as serious business (the make-believe racism and politics was so stiflingly moronic it was hard to be invested in any of it) and the show suffered for it.