SCEA rejected it because both games look BAD when compared to 640x480 16-bit color titles like Stella Deus and Atelier Iris. G2/G3 are 320x240, use 8-bit color, have terrible animation and lame FMV effects. They look like last-gen 2D, and mediocre last-gen 2D at that.
Come on Drinky, be fair. Imagine you are a SCEA approval team member, and you get Magna Carta and Growlanser 2&3, would choose Magna Carta over GW because it has better presentation?
There are terrible games out there, and Growlanser, old and all, is better than much of the crap you can find nowadays on the shops. Thas is my main complain forward SCEA.