A friend nagged me into watching this and I thought it was dynamite. One of the episodes in particular blew me away. It had a current event, a flashback and a Japanese puppet theatre show all interwoven into the story, it was really well done.
The "is this anime?" question is quite interesting. I've tried on a few occasions to get into some of the "big" anime shows and I've never enjoyed them. Blue Eye Samurai is made by Westerners, so I guess it's not technically anime, but the style definitely makes it feel like one. I also really enjoyed Castlevania which is in a similar vein. It does make me question what it is about the Western anime influenced shows that I enjoy, or if I've just been unlucky with the shows I've watched.