It seems overhyped because the many people singing their praises apparently cant find any fault in it. It's the Mary Sue.
Final Fantasy 12 is my current #1 rpg of all time and I find it has a ton of shit wrong with it, even in the international version. I rarely see someone not like something in Xenoblade if they like the game.
I don't think that's true at all. I loved the game more than pretty much anything else I'ce played in the last few years and I still have my issues with it. It's one of these games that are so big and ambitious that they are pretty much guaranteed to have its fair share of problems -- but in relation to the whole package the gripes are still relatively small.