Also, playing on hard when you skip most of the fights is probably not that easy, as Hard presuppose you to have good equipment. It's less "levels" than gear though. Well, levels still do help, as they give minimal stat increase and ARTES.
I've only been using the fusion system sporadically lately. The fact that I don't fight the same enemy enough times to get multiple powerful drops means I don't get (m)any duplicates of the more powerful equipment, which makes fusion occasional at best.
Anyway, I'm almost done with the main plot. I might do some side quests before I beat the game. The combat system has sort of grown on me by this point. It's simplistic and complex at the same time, and you become very powerful once you've mastered all the combos, artes, blasts, etc. The proper challenge on Hard in this game comes from winning boss fights when underleveled and without using items. I've even managed to get several achievements for that which, according to Steam's statistics, only about 1-2% of players have gotten.
At the same time, I still think the companion AI sucks and the way you have to wait for the seraphim to revive so that Rose can be revived, too, is pretty lame (when not using items). I wish the companions were simply better at dodging instead.
Also, I like the loot system in this game. It's a solid combination of hand-placed loot and loot drops from enemies. It's pretty engaging. More RPGs, J- or not, should have this sort of system. The one thing I dislike though, is that you have to fight the same enemy too many times to get multiple instances of the more powerful loot; good for grindfags I guess, but not for me.
If I had more free time, I'd replay this on Intense/Chaos. I feel like I know the combat and other systems well enough for that already, and I've found that my reflexes suck less than I thought they would. However, D:OS EE and TitS 2 are calling, so I'll probably just move on to those.