It's been a while since I showed up here. I'm happy to see the project is still proceeding and I look forward to it being released, though I am hoping that SEGA finally gets that we all love Phantasy Star and HD remasters PSP and PSP2i for the Vita and/or just releases PSO2 in the west. I know there's the tweaker and patches for PSO2 but I would still love to see it in the west. And what ever happened to Phantasy Star Nova I heard about?
There's too many issues to prevent PSO2 from being released in the west, much less do well there. There's definitely a difference between the server overheads for a game like PSP2 and PSO2, meaning that past translating it there would need to be a lot of time and money devoted to running it. There's also a lot of collaboration costumes, which are a licensing nightmare so the costume selection between the two versions would be drastically different.
PS Nova was never really a candidate for localization (probably due to the relative failure of the Vita in the west), though AIDA is working on a translation patch for it. http://arks-layer.com/nova.php
So basically, SEGA has deemed Phantasy Star a failure in the west.