I haven't yet played Infinite Undiscovery, but Star Ocean 4, I thought, was terrible. The characters were among the worst in a JRPG in immediate memory and, as you said, the dialogue was just dreadful.
You won't be hard pressed to find a JRPG better than SO4. If you own only a 360, Tales of Vesperia and Lost Odyssey are much, much better offerings. I'm also enjoying Blue Dragon somewhat (and it's very cheap!), although it seemingly isn't as good as the two previous games I'd mentioned.
I can't offer anything in terms of comparing IU and SO4, but I can say that SO4 is among my least favoured JRPGs... just terrible. I don't blame you for thinking about trading it in, it may still be worth quite a bit.







