My problem with the screens isn't that the graphics look "objectively" bad or anything, it's that it lacks style. Final Fantasy Tactics and Tactics Ogre both have technically unimpressive visuals but are nevertheless really nice to look at. FFXII was impressive in both regards but that would be an unfair comparison. This can get fixed by appropriate lighting and whatnot though, which is why it's hard to really pass judgment on early screenshots like these.
As far as the flanking thing goes I don't think it'd be too difficult to display (I think FFXIV does it really well by having a ring under enemies that let you know exactly what range is considered the back of the enemy), but I will agree that most games that try doing the circular movement thing don't design the maps to accommodate that very well.
Yeah. We're probably looking at the proto of the game's Sweegy Woods or something. I'm not terribly worried on that front.
Sadly, I think the best example of a circular based combat system for an RPG I've ever played is Quest 64's battle system. Namely because encounters literally drops a ring around your character when he gets into a battle, wherever he is, to fight in or escape from in case of a crisis (though you're screwed if you come under-prepared for a boss fight, or if you're surrounded in a tight corridor). Which would've been really nice if 90% of the game's environments didn't either consist of narrow corridors or featureless plains/deserts, and if the player had more than one playable character to use so that fights didn't devolve into Dragon Quest 1 style fights of 'run up to enemy and wail on them with your Shillelagh/cast a spell that wails on them', 'get wailed upon', 'repeat'; or if you're underleveled and really hurting (and god help you if you are) 'run away + cast healing spell', 'get wailed upon for almost all the health you just healed back', 'repeat until you're full HP or out of MP', 'wail upon enemy with your Shillelagh/burn MP restoring item', 'hope you don't die during the enemy phase', 'resume healing', 'repeat'.