The problem with LO is that it is character driven rather than plot driven. It's a story all about the characters, which is most notably achieved through the Dreams. Plot driven stories are typically easier to consume, they require less thought or analysis and are in general more superifcial. LO has more character development than any RPG I can remember, with plenty of subtlty and nuance to its storytelling. As a result it's naturally not going to appeal to the average gamer, who typically has all the subtlty of a jackhammer.
As for the OP, I recall needing to use Jansen and Fire to win that early battle. It's a difficult battle to be sure, but easily winnable with a consistent strategy. Afterall, the game is designed so you never have to grind - it is designed primarily so that you will need to use a consistent strategy to win many of the battles.
