Neither the travesty we feared, nor the masterpiece we all wanted...and still so desperately need.
The answers are as follows: No, but so close; and yes.
First up, you'll notice that SEGA have taken desperate measures in these desperate times. Finally, a return to 2d.....Finally.....a massive character detox (no Rouge, no Omega, no G.U.N, no Shadow, not even *Knuckles* is spared), Finally, graphics worthy of current-gen consoles, Finally, the light dash is a different button......but even these things are overshadowed by what amounts to excessive padding by artificial lengthening.
The Werehog levels are absolutely not the game-breaking piece of **** that we all feared they would be, however, they don't reinvent the wheel, and are about as tolerable as those hunting and shooting stages from SA1/2. The combat system is simple, but suffers from many bad action game quirks. For example, you get extra combos as you level up Sonic's stats (the level-up system isn't a bad thing , nor is it a good thing, it's just.....there), and while they certainly look impressive and are fun to pull off (slo-mo Sho-Hog-Ken into spinning mid-air piledriver ftw), they're not essential as you can just mash Y to get you through most sections, which in an action game is a absolute no-no. There's also a block and dodge system, which is similar to DMC's, and it works well here, and the overall werehog experience is no worse than the shooting/hunting games in SA1/2.
It's just that the daytime Sonic levels are SO good, they make the Werehog look and feel *exactly* like the game-breaking piece of **** that we all feared.
Speaking of the Sonic levels, they are good. Really good. No, seriously, I mean it, Jungle Joyride is up there with Final Rush, Starlight Zone and Metropolis Zone. They are an absolute joy, with 9 "main" sonic levels, ranging anywhere from 3 - 8 minutes in length on your first try, and about 18 more bonus ones - these are extra-super-duper-hard stages that will test your skill and patience, some last 30 seconds, others 3+minutes. These day stages strip the Sonic experience right down to the core, and are easily the best thing about this game. New features such as Sonic Boost, Quick-Step, Sonic Drift, Stomp, and classic revivals like Light Dash and Homing Attack (now on a different button, which anyone can easily get used to) all work fantastically well, and you will need to master these moves in order to succeed. It's a blast. Jungle Joyride Act 3 will test your Quick-step skills to the absolute limit. This game fixes all the problems with traditional Sonic game play, it absolutely does not feel automated at all, and all accusations of non-interactivity and can be shot down, right here, right now, by the daytime sections of this game. Sonic can work in 3D.
However, typical post-06 Sonic-game-structure-syndrome rears it's ugly head. Artificial lengthening, Excessive padding, Mandatory replays, whatever you want to call it, the other major flaw with Sonic Unleashed is the hub world exploration and medal collection system, forcing you to grind from level to level replaying them in order to unlock medals. These medals will then unlock the stages you need to progress. You'll able to get through most of the game with minimal grinding (in the RPG sense lmao) until this happens:
"You need 21 more Sun Medals to access this Gaia Gate".
If the Werehog levels weren't bad enough, you will find yourself playing through them again for they hold more sun medals than day stages. So it took half an hour to wade through the stage the first time round, now it'll take even longer as you'll be scouring for medals, and as such will make the game longer for all the wrong reasons. It's a shame it all had to be like this. My advice: scour the stages for medals on your first try.
The soundtrack is excellent. Nuff said.
For longtime Sonic fans, the day stages in this game are like Sega's gift to you for your perseverance and sticking with the franchise through tough times. The werehog stuff is passable -barely- and the game is beautiful to both eyes and ears. But this is ultimately a disappointment, considering the proverbial bar is set so high by Sonic's legacy and fandom. While the bar is high, the day sections of this game prove that it is definitely within Sonic Team's reach; that they can, they are capable, of creating something truly great.
Two years ago, after the crushing, humiliating blow of Sonic 2006, the prospect of a resurrection for the blue blur seemed an impossibility. What SU gives us is hope, hope that Sonic Team can pull of something great, and that we'll see this "second coming". After Black Knight, the next logical potential release window for a new Sonic game is either Xmas 2010, or -in an interesting twist of fate- 23rd June 2011, 20 years to the day, that sonic first appeared on our screens. That will be an interesting day for everyone, and I for one, cannot wait.