I felt the same way about this film. Good, but not as good as the first film. Anne Hathaway is really so good at playing the character that you begin to forget she's not actually a princess and there is no such place as Genovia... at least until John Rhys-Davies starts to slightly chew the scenery. It was great hearing Julie Andrews sing again, even if she'll never be the Julie we remember.
I wondered, as I exited the theater, why they took such pains to wrap up all the storylines at the end of the film... that is until I saw Anne Hathaway on Graham Norton the following night. She absolutely refuses to do another film, even though she had a great time and loves the films. Apparently she doesn't want to get typecast for this sort of thing. Her next film involves nudity (that's certainly one way to wipe the image away

)