As much as people generally like the animations, there have been many disappointed that, for example, the dragon shield looks unique in you inventory, but just like any other large shield when equipped. In theory, pre-rendered and optimized 2D animations will always look better than 3D renderings, but it remains to be seen how much difference there will actually be in practice. The 3D character models will allow much more customization and help the atmosphere of the game.
Personally, I am more concerned with the story than graphics (better quality is preferred, but I've played Final Fantasy VII, where the character's hands looked like blocks of wood), so assuming the 3D models are done well, am willing to give up a bit of quality for customization.
