Arakune's curse mechanic has been totally revamped. While it still only takes one cloud or bug to curse, the curse is ineffective until he hits you with two-five clouds or bugs. This initiates 'fever' mode, which allows him to summon bees. Many aspects of the curse have been nerfed. Fog doesn't have a hitbox, so while you can still get cursed by blocking it, you don't have to worry about it as much, as you can continue attacking and whatnot. Bees are no longer as potent, ie, no more 3k of damage off a single bee. Bees cannot guard break. Bees are now larger, so they're easier to see and avoid. In general, I think Arakune got a ****ton of deserved nerfs which is great.
(or at least, this is how I understand it)
But as a reminder, these changes aren't permanent, they're from a local test study, where arcsys has allowed japanese players to test the changes and make an informed decision on what to keep and what is bad.
If anything, I'm worried most about the game mechanic changes.
Burst has been totally reworked to be like GG's. Which I don't like. Read up on it and you'll see details. I think it could introduce a lot of new strategy, but in the end, the BB burst was nice...
Guard Libra has been changed to Guard Primer, which is really weird, but it could be cool, I'm just very skeptical.
At least it looks like Nu (now Lambda) is going to drop several spots on the tier list. Her nerfs look painful.
Anyway, I'm excited for Continuum Shift regardless, though it'll probably be a year before we get it.
EDIT: First gameplay footage:
http://www.youtube.com/watch?v=JV3WYGmU7Fg
Shows off Tsubaki.