Aww, darn real life people ruining characters. :P But Karol being a coward was part of his development! And I mean, he's only 12. Makes sense for him to be afraid, really. I don't feel like they go over that point as much as they should with their younger characters, really. And I'm totally biased here since I love Raven, but you didn't remember the Schwann thing or any of that? :( But I'll give you fair game and say Judith was pretty bland for me. I absolutely love her design, though!
Duke was a good antagonist though, definitely! I like that Tales villains get me to thinking a bit...for the most part. I still don't like Bisley at all, but Gaius from the first Xillia had me like "damn.....are u even a real villain tho...." aha. I actually brought him up as a point in my writing class in college when I had just finished that game.
Oh, and I don't??? Get the Flynn/Yuri thing much either? I feel like I would understand their relationship more if I had played the PS3 version, but you miss a lot with those extra bits out of the 360 version. They're a popular ship too and I just don't see that either.