Holy Crap. Just saw this linked to on Penny Arcade today...
Not sure how much the player is in control of here, or hell, whether it's just a "concept" trailer like half the early PS3 trailers, but that looks bloody brilliant. No idea how the combat system works, looks like it might be some sort of timed button press system (maybe more rhythm game style - along similar lines to Vagrant Story's counters?). Excited.