Character development in XBC2 is way above the other games tbh each character has a deep back story even the characters who are supposed to be henchmen have a back story this is even further highlighted by the Torna dlc, various non story blades themselves even have back stories. XBC1 is easier for people to follow because it's a traditional way a story plays out XBC2 however is a collection of individual stories that overlap and come together during an overarching issue, the result is that the latter takes more time to take hold it's not until chapter 3 when the game really begins.
Only reason I think the original edges it in story is mainly because it doesn't take as long to get going and is paced slightly better otherwise I'd say the games are even in that regard.