I don't think it's terrible, but it is inferior to The Precursor Legacy, which is one of the best PS2 games and one of the best platformers I've played.
I respect Naughty Dog for trying something new, but I think the old formula worked better.
For those who like 1 the best, try Daxter for PSP. It has more in common with The Precursor Legacy game than either 2 or 3.