Well to a certain extent Shenmue does feel less like a game than Shenmue II. They were going a more unique way when they made the first entry in the series. The changes to the pace and the reduction of the mundane in Shenmue II made it more enjoyable overall but they also made it come closer to a traditional game while doing so.
Talking about the setting is a difficult matter. Shenmue is meant to have a familiar feeling city and a fixed location you can call home while Shenmue II is meant to throw you in a foreign enviroment with ever changing life conditions. Of course everyone can have their preferences but I don't think it's fair to say that one or the other setting is better. I could only rate how well the games manage to pull of their respective feel and to me the slight winner here is Shenmue II.
In specific points, this is where Shenmue has the upper hand
- Weather effects
- Importance of time (and how you go about to make it go by)
- NPC routines
- Free training
- Ease of counter attacks (the timing in II is so strict that for a long time I thought they were gone)
- Kitten
- Forklifts
- Telephones
- Online features of the Passport Disc (too bad it's so hard to access the stuff)
- Raffle and winning cans
There are only a handful of things missing from Shenmue II that go deeper into the details of the game, like the items that don't carry over or were made into capsule toys since they lost their purpose or how the camera can be moved during fights.