It's a SURPRISINGLY great game. The series ends up returning to Xenogears-levels of greatness. It's seriously hard to find any fatal flaw in the game, save for its difficulty level which is a bit too easy. Nevertheless it's got awesome pacing; indeed, I can't recall the last game that prompted me to finish it as fastly as Xenosaga Episode III did. It's one of the best console RPGs of last generation, and one hell of a ride.
The new boost system works well, once in a while it simply gives you a supplemental turn which you can use on your character of choice. The boss fights are excellent and very epic. The music, while not as catchy as Mitsuda's efforts on the original, is still phenomenal. The dungeons are good and well-designed, without ever feeling too tedious or too easy. The mech designs and animations are some of the best ever seen on PS2 this side of Zone of the Enders 2.
There was a very convoluted space opera story to wrap up, but Monolith has managed to do it well. It's all very enjoyable and thrilling, and it doesn't feel incomplete or nonsensical. They've included an encyclopedia which adds tons of details on every character, every term, every location... you could easily spend a few hours reading it all.
Give it a try and you'll be gladly surprised.