I honestly think that you and others are saying this because you guys are comparing a game that you eitger already played and finished, or watched it at the best quality possible on youtube, and are comparing to a game that showed small and very specific places of the game, all the while only having videos that came from streams to compare to.(in other words, lower quality videos)

But it can be taste as well, something that is unique to each one.But ill leave this here: people are "hating" on the charachter design just because they are anime inspired, and looking past the point that the models just look and are animated way better.But thats just my teo cents on the subject.

.....you have not played or completed Xenoblade 2. You are doing the exact same thing. Besides, I haven't played Xenoblade X, or 2. I wanted to play X, but I already left out my Wii U by the time it came to America. I've seen just as much of X as 2. The same exact thing you're saying could be reveresed back to you. You are also comparing the graphics of X to the limited amount of footage we have of 2. The rest of the areas not shown in trailers could look like complete arse. No one knows how it will look in the final product, that doesn't mean we shouldn't judge  the game based on what is given to us. 

Aesthetically or technically?  Cause one of those is your opinion, the other is an objectively false statement :P

There are numerous technical improvements over XCX visible here.  Water effects are improved, texture resolution is the same or better, especially in the city, lighting is a big step up, grass is using a more modern and demanding mesh based system rather than billboards and they've got the draw distance up to scratch now, shadow quality seems improved and draw distance issues resolved, the LOD quality is at least as high but possibly higher in this video, the large foliage like trees are q big step up compared to XCX (XCX skirted this issue in Noctilum by having mostly giant fungi and ferns, not trees).  And on a less technical note, the color palette is much broader and more distinct.  In short, I can see no areas yet that are technical steps back and several that are technical steps forward.  This could change after seeing quality direct feed footage, but with this video being the best we've got of the latest build, it's looking like a clear step up.

While I have no doubt it's technically more demanding simply by virtue of running on stronger hardware, the water doesn't look any better to me, and the grass still looks like sprites. Granted it is hard to say much for sure to say based on compressed streams further muddied by youtube and a less than full screen window, but with the more powerful GPU and larger RAM available to the Switch, I'd expect considerably more detail, but so far I'm just not seeing that.

Japanese devs haven't had the best technical record recently so give them some slack ... (It's the content that matters when judging their games, right ?)

Check the video at 35:40 and the closeup at 41:42.  Also check the E3 stream at 11:30.  The grass is made up of multiple bisecting planes like in Skyrim, Fallout 4, Witcher 3, Final Fantasy XV, and so on.  In the E3 build they had some billboards mixed in but those seem to have been dropped.  

The water is harder to see with the stream quality but I'm 90% sure it's more accurate.  XCX used pretty basic cube-maps.  

And that change in grass techniques is a pretty drastic leap in demand for the hardware.  And the trees being of the poly count they are is also a significant improvement over what you see with, say, the trees in Primordia which are quite basic.

Right now, improvements beyond polycounts and lighting are hard to judge cause the videos are a bit muddy.  The architecture of the city seen here though definitely has more texture detail than NLA.  We'll have to see how it all comes together, but I'm very optimistic about the games technical prowess. 

Still can't really see it, tried blowing up the video to full screen but it's just too murky. Some good quality, full screen, direct feed footage would be a godsend right now.

Lol, you realise comparesed off-screen streaming footage cant be compared with direct footage in any case, we talking about night and day difrence.

Actually on other better quality video, there are much less and smaller slowdowns, but even quality of that video is not good but just better than one from OP.

Even with low quality videos, its obvious its improved over XCX, going from characters models, lightning, effects, water, foliage, colors, textures probably, and probably resolution. Also again, this is a game still in development, it's not released game.

Taking comprased, low quality, offscren, obvously very mudy loking video of game in development and using like some kind of proof that game is looking worse than XCX is crazy.
It's interesting that some people start saying this just with this compressed, low quality, offscreen, obviously very muddy looking video.

Well, for grass I think that if you pause this video at 3:09:30, you can see the meshes pretty clearly:  https://www.youtube.com/watch?v=NerM3G1-d0Y&t=12119s

If you look at the grass right behind the feet of that tiger/lion blade, you can see the grass is made of bisecting planes.