The more I play it, the more I like the game. All the game mechanics started to click together, Yokai skills became muscle memory, plus experience from first game helps. When you get access to Ninjutsu and Magic, the game really opens up - the amount of tactical options to fight enemies becomes amazing - I didn't have this feeling since Dark Souls probably. There are moments when you have Enki, poison Blob and Snake Lady in close proximity - if you don't study environment properly and plan beforehand, you will die miserably. Very satisfying to get the plan in place and execute. Also - dual swords low stance + poison = fun. I see that some of the Ninjutsu skills have elemental powers now, looks fun.
I was going to even post that maybe the game becomes a little bit too easy (level 30, finishing third main mission / 7 missions total), but some of the newly introduced enemies made me rethink that. And probably I will rant about the boss soon (Yatsu no Kami), but will give myself few more tries before I do that.
Overall, they improved everything. In the 15h I played so far, I had probably more than 14 distinct enemies (Gaki, adult Gaki, Enki, Yoki, Ipon-Datarra, Tengu, One-Eyed Oni, Abhorrent Soldier, human soldier, armored soldier, skeleton warrior, Sohaya Warrior, blob, elemental head) - and probably forgot about something. Level design is also improved I think. Even Dark Realm is a nice improvement (even if I hated it in the beginning). Another plus - the game is not cheap. Very few moments when you die because they wanted you to die (cheap ambush, max 2 times so far).
The only thing that should go is this Burst Attack and Burst Counter crap. The amount of times I died to this is amazing, and it's totally stupid - you can have an almost dying enemy, with 10% or less health left, and he will decide to do a Burst Attack as a last resort; if you are too close / not enough time to react, this is instant death very frequently. I hate it.