I was actually pleasantly impressed by this. Okay, it's probably not as good as Storm. People need to stop comparing the two though because they're different games on two very different platforms. I don't own a PS3, so get over it.
The roster has been dramatically improved and the number of combos has gone up. The levels are now much more open plan, with some nice lighting effects and heavier detail on the grass, flowers, etc. It's not pushing the xbox360 system but it's doing a pretty good job.
The cutscenes and voice overs are much better. I'm playing through the story mode with purely japanese voice overs and subtitles. The anime extracts have been completely removed, replacing it with in game cutscenes that have much higher expression details than before. The cutscenes in Storm, again are probably a bit better. Yet this isn't bad.
Being able to play as Saskue in the story mode, as well as practically and character in your 3 man cell (for the first 5 hours i played through entirely as Jiraiya when we travelled to find Tsunade - thats freakin' cool) is a really nice touch. The scenes where you play as Saskue's inner torment also has some really nice atmosphere.
Lastly, we have online. Sorry PS3 owners, but N:TBB trumps again here. Tag matches are shaping up to be pretty sweet. N:TBB isn't an outstanding game and the visuals/fight mechanics aren't as true to the anime as Storm is. However, this is a strong action/adventure/rpg/ beat-em up. At the end of the day, i have fun with it.