You know, Mala, I am actually very interested to hear what you have to say! Having loved the game profusely myself, and not having met many people who thought otherwise, I'd be interested to hear the other side of the debate. Feel like writing it up here or PMing it or something?
To be fair I didn't play the game when it was a big deal so I'm not able to judge it probably the way it was intended to be.
Anyway, to me this game really represents basically all of the bad ideas that were going on in jRPG design at the time. There are some games that, when you go back, feel like charming classics that are still basically functional and entertaining. This is why people make games like Cave Story. Skies of Arcadia in my opinion is not one of these charming classics but rather a stale old game.
Most notably, the graphics are not just *bad*, but they are also awkward. They are a rudimentary attempt at a colorful 3D game, and the models and environments look blocky and uncomfortable. The camera moves around dramatically, especially in battles, but the designers didn't have a solid sense of cinematography and I actually got a little nauseous during boss fights (not to mention disoriented in dungeons). Competing RPGs such as Final Fantasy, Suikoden, or Dragon Quest may not have been as ambitious with their graphics, but because they were more conservative they felt much more cohesive. This game just looks like a mess. There is a difference between being a graphics nut who demands the latest in pixel shaders and being a person who wants their games to at least look as if they were intentionally made to look a certain way. Skies of Arcadia looks like a bad experiment and does not try to operate within the confines of its available technology.
I guess the basic RPG mechanics were relatively sound and everything but I felt like the rest of the core design was really boring. The dungeons were really maze-like and plain, which is not okay if they aren't randomly generated. I was also expecting the world map to be really incredible, because everyone had raved for a decade about how awesome 3D navigation was, but it really turned out to not involve any 3D navigation whatsoever and was probably one of the worst ways I can envision to move from place to place.
I also felt that the writing was really ridiculously terrible and wasn't helped by the amateurish voice acting. It was basically just like Grandia (was this game made by the same team?) except less self-aware. Rather than feeling cheesy in a Saturday-morning sort of way, it felt cheesy in a childish way. There's a big difference.
So yeah I guess this might have been a pretty good game back in the day? When I saw it at a used game shop a few months ago for $20 I snatched it up immediately and was really psyched to play it because it's such a celebrated classic. Playing it, though, felt like I was playing an old game like Fighting Force or something -- it didn't age well and just felt like a bad, old game.