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I'm still undecided.
The Yokai are interesting enough but people who don't know what Yokai are will either find them too strange or just confusing as hell. Your party members in the demo consisted of a:
>cute cat
>turtle with a straw hat
>old lady
>dog with the face of an old man
>forgot this one
>forgot another one
I don't like the idea of constantly having to use those minigames during the battles either. I'm worried about scratching my screen from circling too hard ala Pokemon Ranger.
I really don't think it's going to catch on in the West, but I want to see otherwise.