Since few months ago I started to play Tales of series and really love Tales of Xillia I approve of the cut-in, although it could be more action-like in appearance (if you played Tales of you'll know what I'm referring to).
The image cut should definitely stay... and while I'd really like to create some specific artwork for limit break cut-ins... I'll have to wait until I plow through a big chunk of the existing art queue. Given the size of the queue, I'd say don't count on seeing any limit break art for a very long time, if at all.
I do think the image cut-in should be tweaked a little bit. I think, at the very least... you should have multiple layer/images with contrasting motions to give the cut-in a more dynamic feel. So... if possible, I'd suggest reducing the width of the black bars, having the orange action effect start as a line that originally comes from the right side of the screen (somewhat hastily) and then having a glowing center point on the orange line vertically expand into the thicker window that is shown in the video. After that, you can have the cropped character art come sliding in from the left side of the screen very quickly (to signify momentum) and then have its speed drop dramatically as it reaches the right side of the screen (where the artwork currently is in the video).