I finished Episode 6 and now feel qualified to give a definitive review of the game.
Pros:
The ARMS battle system is really well done. A lot of people have compared it to Valkyria Chronicles, sans the real-time aspect. Personally, I think it's closer to BoF: Dragon Quarter's (which the ARMS battle system predates by a couple of years). The addition of flying to fight against the bosses is pretty inspired.
Each battle has different objectives and plays differently. In some battles, you have to divide your forces so some are on the ground while others are in the air. In others, you have to move to different areas to disable cannons so your other characters can move forward. In others, you have to save certain objects and not let them be taken away by enemies.
If you enjoy anime, specifically mid-90s stuff like You're Under Arrest and the Patlabor TV series, you will really enjoy this. Each episode is structured in the format of an anime OAV. Interactions with the characters are constant, and there's at least a couple of free-roaming sections in each episode where you wander around New York and can interact with the various characters & NPCs. Depending on where you go and when you go, your interactions will vary, so pretty much everyone will have a slightly different experience on their playthroughs.
The characters are genuinely likeable, if stereotypical. The main lead, Gemini, is just a friendly samurai cowgirl with dreams of making it big in New York City. Then there's Sagiitta Weinberg, an African-American lawyer who works out of Harlem and is also a Broadway actress (lol). Rikaritta Aries is a Mexican bounty hunter who also happens to be a ten year old kid. I haven't heard her dub voice, but her Japanese voice is hilarious. Subaru is the mysterious, enigmatic Japanese person (whose gender is a subject of much debate...paging Junpei). And Diana Caprice is the quiet, shy, kind one, whose best friends are the birds in Central Park. This all sounds fairly ridiculous, but the thing is, the writers and director KNOW it's ridiculous, and they treat it as such. They are gently mocking the tropes of anime while making homages to old '70s super robot shows, harem anime, steampunk anime, sci-fi, and period stuff.. Unlike Star Ocean 4, which really just totally blows it by presenting you all these ridiculous characters and taking it completely seriously and tries to be "epic", Sakura Wars knows exactly what it is.