I think the character development was inconsistent because of the need to accomodate the party system. While it has worked in other Final Fantasy narratives, I reckon the sheer complexity of XII's politically-driven plot could have better suited a smaller cast of more fleshed-out characters. And if we should even have to designate a "lead" character, Balthier should really have been it. Vaan was cynically given the role on the premise that he was younger and would relate better to the game's audience.
Nevertheless, I admire this particular game a lot more than any other RPG in the industry simply because it gives you scope for some empathy with the "villain" without being obvious or polarised in delivering it. You only need to look at Vayne's speech in Rabanastre to realise that he's not the malignant bastard everybody thinks: he's cultured, with a love of architecture and the people of the city. Sure, the rampant, unmatched imperialism is still there (with off-the-shelf nasty anonymous troopers). But the politics remain interesting and deep enough to add authenticity and weight to an already vivid world. I cannot honestly say I ever got the same feeling from, say, Final Fantasy X. The environment ? while beautiful ? felt incidental, and while I believe a plot should be character-driven, the setting has to be believable. What Final Fantasy XII has done is take strides in this direction, whilst taking a step or two back from the strong and emotional (well, more emotional anyway) characters of previous games. Ah well, hopefully XIII will find a way to reconcile the series' two key elements.