Is there another way to modify the overall appearance of characters design that will not throw all your work out the window? For example looking at Daz site there are more cartoonish character models as well such as The Girl 7, not saying this specifically is the solution, just curious if there is something that could morph the overall facial features of all characters to be less realistic. This would help with the hearts in eyes, the hair detail and may help find a more complimentary lighting/shading solution since this is not posed/pre-rendered like the first game.
Understandably you want to work on code and get suggestions to improve the game and all you get are comments about the character models not "looking as good" as the first game. Unfortunately when so many are turned away or negatively distracted by the current character appearance it will be difficult to get more useful testers/feedback. Also filling the rooms a little with placeholder objects may help, not expecting the finished product but some cabinets, countertops, art, posters, bookcases, trashcans, different color walls in classrooms (adding cablinets or bookshelves along walls may solve the issue of too much empty space.)
In the first game the interface worked well with all characters in a location all standing and facing the player until triggering an event. With the change to a 3D game the current interface and camera is less than ideal in rooms. A default grounded first person view of the player moving around would be nice to use for interacting with characters and looking around without camera flying around and going through ceiling, walls, floor. The focused camera is good, but "leave your body at the door" in 3D game takes away from feeling of controlling of the specific character. Also one of the most fun features in the original game were the Glasses themselves. The James Bond x-ray vision effect. Is there a way these could be brought back or as the story explains with it being a power from Lily, could it still be a focused view that moves around (this has sometimes been shown in comics where xray vision is just where they are focusing, similar to first game but without wearing glasses), with different layers of penetration based on power level and filtered choices at higher level including filters for strength, range and the current separate male and female selections. Strength of vision - see through furniture, see through outerwear, see through base clothing, see through underwear. Range of vision - see through just a small part of a person's clothing, see through a whole individual's clothing, see the whole room without (this one already exists).