I don't know about development, but before Xenoblade, Monolith did stuff like Disaster, Soma Bringer, DBZ RPG, and helped in a couple of projects. Now those were Bombas.
Xenoblade on the other hand was a project that not many people had faith on, I remember when they showed it, along Last Story and Reingleiv, nobody payed much attention to it, and instead started begging for a localization of Last Story.
FF to 2014, people are comparing X to FFXV, which I suppose Nintendo is very proud about, I think they have a winner in their hands, and if they treat the franchise with care, maybe this game won't sell a lot, but you establish the grounds for a very successful franchise in the future.
About cost, I'm talking with information extracted from my ass, but I wouldn't be surprised if X's staff is basically the same as Xenoblade with 15 or so added code monkeys to help with it. Give them 3 years of time, and you get an excellent game.
The Xenoblade engine holds very well in HD as demonstrated by Dolphin emulator, and there are not too many core changes, so I can't believe when they say it's a very expensive franchise.