No, it's not.
I guess it could have been, but it's not.
The biggest disappointment that I found in Jade Empire was, in fact, the setting. It was supposed to feel like some kind of eastern japanese fantasy tale, but in the end it felt bland and uninspired western kind of fantasy. WTF?
I played a little game called Prince of Qin some time ago, it was from a Chinese developer and really got the setting right. Now that's what I call a good eastern tale. JE? It looked promising and it could have been good, but no. That'll hopefully change in the sequel, but if you go too eastern you'll eventually turn away the western audience soo... guess not