I got the same feeling, it does feel either rushed or like the devs ran out of ideas towards the end. The whole resolution with the cloaked figure and dallis REALLY felt like the plot jumped the shark. Arx is not -bad-, but more disappointing next to how great the rest of the game was.
Minor spoilers ahead:
There's too many gimmicks like the revenants that I still have no idea how to kill, the doctor who seems to be universally accepted as the worst fight in the game, instakill deathfog spiders, and a couple more that are just not fun.
But it's not all bad. I liked the sewer dwarf plot / fight, it was interesting. I liked the sorcerer from the sewers. The alchemist assassination was a bit annoying but ultimately cool in how you can double-cross everyone.
And the visuals / music / atmosphere are amazing across the board!
All in all I agree with how it needs to be a bit clearer with where you should go and what you should do to progress, and it needs a thorough balancing pass. But overall? I think it's at least decent. The foundation is there for a great chapter. It just needs a bit more love & polish to live up to the rest of the game!