Unfortunately, unless they change it, Budokai 2 is going to disappoint all of us. First, no Story Mode. They're replacing it with Dragon World, which is basically a board game. When two people meet, they fight, and I suppose the person who gets all the balls first wins. But come on, how much fun does that really sound? Wouldn't you rather play Story Mode and go SSJ3 for the first time, or face off against Kid Buu?
Seen as stills, the new graphics look bad. I haven't seen them in action. Also, you can't just fuse with anybody you want... that misconception has been spreading fast. There are fusion capsules that you can use to do various fusions, and while there are SOME odd fusions - like Hercule/Goku and Tien/Yamcha - in the game, you can't just fuse, say, Android 17 and Raditz. Besides, think of how that would work. Can you think of a way it would? If you can't, chances are neither can the Budokai 2 team.
Finally, the new lineup of characters is suspect. Three Buus, Fat, Super and Kid, Videl (why? she's cool, sure, but she has no MOVES), Supreme Kai (fair enough), Dabura (fair enough), Young Trunks and Young Goten (once again, why? Do we need more Kid Gohans in Budokai?)...
Oh, and the verdict is out on whether you can fly at will (they're 'modifying' the flight engine), and you still can't jump or crouch. The reason being they never jump or crouch in DBZ, which means they've never seen Goku in action - he flips around all over the place.