This was actually a big turn off for me when playing Lost Odyssey as well. Especailly with the dream sequences. I skipped it all. There no excuse for this in next-gen games. It can be done, just look as Mass Effect. A true example of a fine next-gen RPG. Of course Mass Effect was an action-based RPG; I’ve yet to see a good next-gen turned based RPG.
I don’t see what the big deal is. The do both have their pros and cons. As long as the story gets accross and is well delivered, what does it matter what medium is used?