I think the main issue is that the original Xenoblade was more anime-like, as most JRPGs are. X is trying to go for a realistic scenario and for anime faces that won't blend well. It looks more like someone using a mask in static shots. And the face models/textures are below average too and contrast with the rest of the games visuals.
Regarding animations, most RPGs have terrible animations anyway. Skyrim does, Dragon Age does. Shadow of Mordor, even if it's more like an action RPG, is that bright lonely star that even with a big open world still manages to create superb animations (specially clothes that look unbeliavable in motion).








