It seems like it might get mixed reviews, hopfully better ones start to come though.

Yeah, I agree with that quick summary so far.  I don't understand why you're telling me specifically though; I actually have the game.  Or were you summarizing what I was saying?

The encounter rate is annoying, but knocking down an old-school RPG 35 points for that aught to be called reviewer malpractice.  The game does too many things right -- so far anyway. 

What I'd like to point out about the game, to those dissapointed by the reviews so far, is that it actually pulls of feeling like a SNES squaresoft title, nearly all of which are considered by most to be all-time classics.  It also does this while feeling essentially Western rather than Japanese, which is interesting.  The writing is pretty good, and you can just feel that this is a unique game within a familiar mold while you're playing it.  Anyway, I don't want to go too much out on a limb, I'll talk about the game more once I've played more of it.

Of course, this is a thread about this specific game, not about the overall viability of the NDS as a platform for RPGs.  Knights in the Nightmare does look cool.