If the demo is anything to judge by, and all indicators suggest it is (by virtue of the nature of why it is better than number 1), DS 2 > DS1.
I think that where DS1's genre was ambiguous, DS2 should certainly be classified an RPG. It is by no account a Planescape: Torment or Fallout, but in its own way it is certainly neat.
I think my one complaint is that the graphics have actually taken a small step backwards. Though they are still quite nice.
The interface is more intuitive, the story is more complex.
1) The game world doesn't revolve around you.
In DS 1, it felt like everything revolved around your character and nothing would change without you. I did not have this feeling when I was playing the DS 2 demo.
2) Quests actually exist now.
There are more quests and they are less fed-ex-y. They can't all be solved at once, but are solved as you progress in the game (with new areas of the town opening up, and certain events triggering people to talk to you in different ways or whatever).
3) A bit of non-linearity.
Interestingly, I had the option of working for the orc-equivalent enemy, or working for the good guys. I don't know what would have changed if I worked for the baddies, but the option existed.
4) Pets.
You can buy a pet and feed it and watch it grow and stuff. Mine is an ice elemental. They can gain spells and skills and things depending on how you treat them.
5) Which leads to leveling up.
Variety is the spice of life. The original dungeon siege system exists, but now there is also a skill tree and you can invest points in certain skills, depending on your class. Depending on what skills you invest in, you get certain 'powers'. Powers are superstrong spells or abilities which can be used only rarely. They don't cost anything to use, but can only be recharged through a special device you might find in the game, or through killing enemies.
6) Party interaction. The party members talk to you! And you can talk back. You actually have dialogue, now, and you can choose what to say. The party feels better now, too - more emphasis on small, managable parties rather than hiring 10 people and just setting them all to auto-attack. On that note, the AI options have been dumbed down. There's basically two modes as far as I can figure: mirror and rampage. Mirror means that other party members follow your actions, rampage means they will attack on their own, leaving you to control your own character. I think this is for the best.
Ummm... there's more, but just in general the whole game has been augmented. The final version should be great. I certainly found it more interesting and enjoyable than, NWN (any part of it)!
