Following playing the game, I used the power of being really confused to harass Sega into giving me a short time interview with one of their product managers, Yosuke Moriya. I didn't really have any scheduled one, but hey, they abided this confused fellow and flung someone out to amuse me for a quick couple of questions.
Yosuke explained that Phantasy Star Universe was a result of the developers looking over the Phantasy Star Online games and considering that they may have gone the wrong way. They looked over the previous games and realized that one of the things that made them rock was the narrative, so Phantasy Star Universe is an attempt to re-envision the world of Phantasy Star Online while focusing on a strong narrative while going over the story of the three planets. The game is planned to be focused on a 40-50 hour single player experience with an online gaming experience similar to Phantasy Star Online.