I though the combat in The Last Hope was far more enjoyable than other recent offerings this generation, it's hardly a terrible game, there are far worse offerings out there. Although i'll agree that the characters drove me nuts, but once you accept it's going to be full of anime stereotypes it's a good game.
As for my reccomendations
Mass Effect 1 & 2 - one of the most immersive story driven series of this generation.
Eternal Sonata - A bit of a missed gem imo, the combat is enjoyable enough, its very similar to Tales of Vesperia with the button mashing. It has some really nice scenery and environments as well.
Valkyria Chronicles - PS3 - Something different in terms of your traditional rpg, but definitely a must buy. It's a slow and methodical game, very much built around turn based strategy, more like a game of chess than frantic combat.
Valkyria Chronicles 2 - PSP - works surprisngly well on this platform, even if it is full of anime/manga cliches.
Demon Souls - PS3 - I've not played this myself yet, as i'm not really into the whole medevil/fantasy/demon setting, but it's supposed to be a fantastic game, and a definite challenge.