Yes it deserves its reputation. Story is top-notch, characters are very likeable, soundtrack is an absolute masterpiece, graphics are fine but elevated by a ridiculously strong sense of style, especially in regards to the UI, the game is beautiful to look at. And unlike other Persona games, the gameplay is actually super fun, with good level design and great combat. As someone who has no nostalgia for earlier Persona games, this one shits all over the old ones, it's one of the greatest games of its generation.
Which is the better RPG this generation if it's one of? Xenoblade 3 vs FF7 Remake vs Persona 5 Royal and others? Is it better than all the fire emblems?
I like 5 Royal better than those listed, but FF7 Remake isn't too far behind it to me. My favorite jrpg of the ps4/5/Switch era is Dragon Quest 11 so far. I like Persona 3 and 4 both better than 5, but 5 is really fantastic minus a few of those annoyance like at night when you want to go out and Morgana tells you, you should go to bed.