I haven't been having trouble -- in fact, I haven't gotten Game Over once yet -- so I can't say that's been my experience. Like auronlu, I tend to poke in every corner, although I didn't get Lulu's "ara" spells until a bit after the Operation, so that might make the difference. I also make a point of cycling people in and out of battles so that everyone gets experience. Not everyone fights in every single battle because that gets too tedious, but often enough. I screwed that up once, and Kimahri ended up sorely under-leveled.

Yeah, Gatta's story just isn't as poignant as Luzzu's. It's a nice contrast, in a way, that Gatta is inspired to start over again and help rebuild the Crusaders, but the way Luzzu just breaks there is more satisfying to me.