I'm glad someone else is playing this right now. I just started disc 4. So far I love this game. Before this game I thought I was losing my desire for JRPGs because I never really cared for FFX and XII. After playing LO I realized that what was missing for me in other games was strong characters that I actually cared about and good storytelling.
So in answer to your question, I don't think LO's story is anything special, but they just seem to tell it in an interesting way and make it possible to empathize with the characters (something I think SE has forgotten to do, but hopefully XIII proves me wrong).
Plus the 1000 years of dreams are some incredibly well told short-stories.








