In fact, is pretty nice. It has its problems, of course, like everygame. But overall, it´s enjoyable.
The story, which is the cornerstone of every graphic adventure, is good. Not perfect, it has one or two plotholes, but it´s worthy being played until the end. I felt satisfied when I finished the game.
Regarding the arcade and time events, it has to be said that there are only 4 or 5 of those throughout the game. Are they annoying? Yes, but not really a big deal. The majority of them happen at the beginning of the game and are not difficult to overcome. Why did animation arts make them? Because they wanted to make a game meant to be played not only by pcgamers but by consolegamers as well. More appealing for them, I would say. And the result is a little bit messy. Nothing gamebreaking, though.
Another thing to take into account is the puzzle-desing. I found the game more difficult than the first Lost Horizon. And some of the puzzles a bit frustrating and counterintuitive. Again, nothing gamebreaking, and nothing we haven´t suffered in many other (famous and loved) graphic adventures. The majority of the puzzles are fine.
To sum everything up, the developers tried to do something different and they failed. And the game has some annoyances that spoil the game experience a bit. But these problems don´t prevent the game from being good and beautiful overall.