The characters and NPCs in game, while more distinct and visible now, have ashen and blurry skin colour. This make them look corps-y, undead-like, weird. The colours on the portraits look just fine.

 

And while we're at it: They are still missing a bit of an outline/dark contour, because if you stand with your party by Merdeth in that high grass, they meld into it almost.

A picture says a thousand words (I borrowed it from Sensuki):

I believe that's kind of a design decision, the skin is not actually blurry but the color is not as vibrant as before. I'm ok with it since it puts the focus on the UI colors, and makes the fight more understandable. A contour would completely detach the characters from the background, so that's a no no for me.

I preferred the old skin tones as well.

Heh! My suggestion of outlines is more a sign of despair on my behalf. Yeah, I agree, it would probably look ugly.

 

But like Justinian demonstrated earlier - it's more a matter of vesting light in a clever way onto the models, also using shadows, to get them to stand out more. As for the skin tones - they are still transparent-ish. They aren't just dull - that's why I said smeared. I'm playing WL2 heaps now, and it uses the same engine. Have a look:

 

Models, colours, everything, is clearer, without any outlines (disregard that red marker contour, though).