Man, I remember the 2.5D rage and I LOVED it because I was fortunate enough to have both a Saturn (picked up when Virtua Fighter 2 launched) and a PlayStation (bought it with Twisted Metal 1) during the 32-bit era. I need to go back and play this one. It always stood out agains stuff like Clockwork Knight and Pandemonium (looked cool but I just didn't "get" the mechanics and moved on quickly).
I have seen this genre starting to pick back up in the indie realm. More Clockwork Knight than Klonoa but I will take it. It is a nice evolution of 2D gaming.
RE: Retro Review - Klonoa: Door to Phantomile