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Kaim is good in the Thousand Years of Dreams but unremarkable in the actual game.
And Lost Odyssey would never pass for an FF. The game lacks polish, a sound and coherent art direction, and is quite conservative in its game design.
It was a pretty good game, but if it were an FF it would've been panned even more than XIII (which was a better game).
To be fair, Mistwalker didn't have a studio as great as Square Enix behind them. Playing devil's advocate, HAD Sakaguchi never made TSW and being disgraced because of it, if he was STILL with Square and SQUARE actually made Lost Odysseey AS a FF sequel, I'm pretty sure a lot of the polish and art gripes would've been solved. This is basically in question, if Square was to make Lost Odyssey instead of FFXIII AS a FF, would LO, as a FF, be superior to FFXIII. Given the FF treatment, maybe have Nomura as the main character designer, Yusuke Naora as the main art director, Uematsu AND other composers contributing to the game(maybe Hamauzu, Mizuta and such), even with the more simplistic story, I DO think it would be superior.