Number inflation is probably a joke, or at least, that's what I'm going to assume. If we're smacking the final boss for 500 bajillions of damage, then my hypothesis will be confirmed.All the delays have made me highly skeptical of this game. I've put it more in line with the Penny Arcade games, and thought this game would be more akin to those. That gameplay demo though looks fun. Just hope that it is jrpg long too, and not a little 4-5 hour game (like the penny arcade games). I hope it is as good as it looks, with a 50+ hour mark on it if you do sidequests and such.
Numbers were strange for a jrpg though. When they went into the menu, you could see that it was still early game, hardly any abilities/strap-ons unlocked, yet they were still at 5k hp. Not that it matters if it inflates to much higher numbers, but again, that could indicate a shorter game with fast progression.
The whole game will be one giant spoof of classic RPG mechanics.