Having beaten them; LoX is a bit more dry comparatively as far as the vocal delivery, but the voices are very discernible from character to character. Despite less emotion, they are all drastically different. The second game relies more on visuals and is much shorter than the first; which was arguably about Arios and focused mostly on his interactions and development, laying out the issue with the world, who has to save the cheerleader, etc. It rewarded you immensely with a stupid-fun side-scroller stage that made it 2 games in one - Although the overhead aspect of teh RPG is what makes the game so monumental.
The parts are more "scripted" for LoX2; Emotion, back-story, and sprite design are emphasized and the menus are simplified. Less is left to the imagination. They also decided to make Pyrra go from kinda frumpy to really smoking hot. Lykos is now the prince of thieves, Daimos has cooler armor and returns as the stoic warror-badass. There is this "Mystery Knight" running around. They had a lot more time to develop the storyline.
I could see how getting a a huge text file without character names would be confusing, even with knowledge of the characters.