The only problem I see with this system is how it would probably lose its appeal during boss fights. I haven't actually played the game, so I can't say for sure.
I played through the entire game, and the battle system has good ideas but is seriously flawed. That's not to say it wasn't fun, since typical battle systems don't even have any "push and pull" and still manage to be fun. The turn switching works fine, and is a good idea. However, here are the problems:
1) It's useless for bosses. Large bosses take up the entire area and there's no point in doing anything but beating them to to death. It works well for medium enemies, though, since you can actually attack a bunch of smaller enemies by attacking a larger enemy who is on top of them.
2) Your party has no grid. It would have been interesting if the enemy could use similar tactics on your party, and you could move them around every turn, like a turn-based Mega Man Battle Network, in order to defend or attack. Unfortunately, they chose the route of making the enemies harder and locking the player into a single row.
3) The combo system is under-utilized. Only at the endgame did I realize that using a certain attack that hit a bunch of times could boost the power of super attacks by huge amounts. However, most skills barely hit more than once or twice.
UnrelatedThe Last Remnant has an awesome squad-based battle system. It was lambasted by some critics, but I think it's great fun. Someone needs to make a game with a similar system.