This is how it went.
Again, that's what was reported, but it doesn't reflect the whole event. "Your games suck" started a bigger argument (Jon Blow was also participating, it was for IGtM) about how recent japanese games, like western ones pretty much, have a lot of hand-holding which both Fish and Blow don't like at all.
the camera rotating doesn't really add a whole lot, only managing to slightly distance the game from other similar exploration based platformers. remove the camera rotating and the game's averageness would become much more apparent.
it seems like they spent all their time and effort into the presentation and not the game-play. if the graphics/animations and music/sound effects weren't so good the game wouldn't be worth playing at all. but luckily they are all very high quality and make up for the rather uninteresting game-play.
I'm obviously not into Phil's brain, but the more I think about Fez (and it's a game I've spent a lot of time thinking about since it was released on 360), the more I'm convinced that the camera rotation was never intended as a "gameplay mechanic", but rather just a way of providing more depth to the environments and the exploration. I don't think dexterity-based challenges were ever meant to be obstacles, but rather just a way of breaking the potential monotony of walking around. Fez is pretty much a game that, to me, seems to be entirely
about immersing yourself into a world, and there is no friction at all to prevent that - unbroken navigational flow is super important and difficult platform sections would have gone against that intention I think.
So, yeah, it's not a game about "gameplay" in the mst common sense of that term. Yeah, a lot of effort went into the presentation. But honestly I prefer the game for it. You don't blame Proteus for its bland gameplay - the point of the game is to walk around. You don't blame Dear Esther for not having platforming sections. In the same way, I'm actually thankful that Fez is focused on being so pleasant to navigate, and that's due to the presentation, and also the jump's tuning which is basicall perfect.
Re. lack of fast travel, I also think it's sometimes cumbersome to go through several areas just to get to a warp gate, but overall imo this is better than fast travel of any kind, for the same reason I stated above: it increased my immersion and was cohesive with the general enjoyment I got out of simply navigating. It also reinforced the "see patterns everywhere" element, which becomes fairly unavoidable after you've spent som time with the game and are trying to uncover its deepest secrets - as you go from point A to point B, you start to notice tons of things on the way; with fast travel, that wouldn't have happened, and potentially the game wuld have simply felt like "warp to A, then warp to B, then warp to C" with most time spent on the fast travel menu than actually in the levels.