1) It's not bad, it's ok graphics. Besides graphics don't make the game, WoW proved that over the years.
2) Actually it's more balanced than previous chronicles, Kamaels are strong in Gracia Final (One of best oly, pve and pvp chars), dwarfs got a small boost, and a lot of D.efl/elf classes are better than Orc and human .
3) Well new skills, fortresses, raid bosses where ok.
4) Like any other MMO
5) Depends on server mostly.
All in all L2 is still alive and will be for some years atleast. The fun depends on friends, clans ,mass pvp. There are still some big l2off low rate private servers with large number of people and those are the only ones with mass pvp and big clans. I will agree high rates are getting more boring everyday.