I think LO made UE3 look as good as possible (framerate issues aren't really issues concerning RPGs). But next to it still looking like Bioshock (and tons of other 360-Unreal-powerd games - it's not just the colour, it's the filters!) - there is a huge problem with the UE3 as middleware for RPG's. And that's this:
By now I would've expected the 'levels' to be gone and the possibility to walk from one side of the world (or at least a plain or a desert) to the other without the loading screen to appear. Level 5 did that already on the PS2 with Dragon Quest VIII. In that regard I AM worried about The Last Remnant: no real vistas, while those ar a big part of the appeal of RPGs.
Still, although LO is not much more than an upgraded Final Fantasy X - the latter was a great game already 
