Last Story is absolutely next on my list, I've heard amazing things about it as well.
Bayard, Xenoblade is directed by Tetsuya Takahashi, and developed by his studio, Monolith Soft.
Tetsuya Takahashi also directed Xenogears, and Xenosaga. He's the man behind the entire storyline, all the characters, and all that happens in Xenogears, Xenosaga, and Xenoblade. He's the author, so to speak, but he also does a lot more. He's very talented. (Fun fact, he also did the graphic design for Final Fantasy V and VI, and Chrono Trigger.) And since I just beat Xenogeras, and how I'm playing Xenoblade, I'm in love with the guy.
That doesn't answer your question, huh?
Xenoblade is similar to both Xenogears and Xenosaga in that there's a lot of mystery, and a lot you don't know about the world you're in. There's a lot of forshadowing, hinting that tremendous and mind-bending things are going to happen (like in Xenogears and Xenosaga). You can tell it all came from the same director/studio simply because it's his style, not because of reused ideas. The storytelling is more like Xenosaga, I suppose, but only because now we have voice acting and better animation technology than Xenogears had to work with. I'm sure if Xenogears was remade, it would be more like Xenosaga, and Xenoblade. Oh, and by the way, the entire voice acting cast in British, and they're goddamn phenomenal. Very believable, especially when they emotional.
The art style is a bit more mature, though. Not as plasticky and HUGE EYES as Xenosaga I was. It IS a bit limited by the Wii hardware, though, but I honestly don't mind it's still very pretty to me.
The gameplay is a very interesting mix of common western AND eastern RPG ideas.
Battle System:
Turn based. Characters auto-attack at certain intervals. You control only one character at a time, but can switch outside of battle.
Characters have unique skills that can be used at any time, but have cool-down times until they can be used again.
Certain attacks cause "break," which stagger enemies for a few seconds. Enemies that have "break" status can be attacked with a "topple" attack, which knocks enemies over for a longer period of time. A final attack causes "daze," which renders an enemy unable to move/attack, but can only be effective if they're already toppled. No character has all three of these attacks, so you must coordinate.
The character you control can move around freely in battle. Certain skills must be used from certain angles to do more damage (i.e. side attacks, and back attacks).
Certain characters are made to draw aggro from enemies, allowing teammates to get behind and back attack.
The ally AI is pretty solid, I haven't had any real complaints.
No random encounters. Some enemies are docile, some will come attack YOU.
There are fetch quests, but none require you to actually return to the quest-giver, which saves you a lot of time. Also, they're 100% optional.
There is fast travel. Even within one map. Like, within one town. Fast travel to the commercial district, or to the military district. To save you time.
NPC's (and some enemies) have schedules based on what time it is. You can change what time it is whenever you want. To save you time.
NPC's (and your allies) have affinities. You help them, they help you. I've yet to see what kind of bonuses this will bring.
You can (choose) to cheer on your allies in battle, which raises their affinity.
Raising affinities with your allies allows for "heart to heart" moments, which tells more about the relationship between characters, and it just great to see.
There's tons of equipment/armor, and it all actually changes the appearance of your character. So if you get 1 "huge ass metal helmet" and equip it on your guy, he actually runs around with a huge metal helmet on his head (and in all the cutscenes!).
A little ranty, yeah? I'm loving this game, though.