I don't have this light, but I figure it would really take some getting used to after using an Arc AAA- the Arc can fit on a key chain and dissappear, while the Fujiyama, at over twice as long, is more like carrying a fairly large pen around.
IMHO, if I were to go with something of that size, I'd consider more power than a 5mm LED offering. The River Rock (or Nuwai) 2AAA light uses a .5 watt LED and is roughly the same size- with much greater output if you don't mind the bluish tint, for only $10.
There are several other lights out right now that offer a brighter output to size ratio: None of the Fenix series (even the L2P) is vastly larger than the Fujiyama, yet all will be brighter. The L0P is only a fraction larger than the Arc.
If you wait a week or two, Peak themselves will be releasing a Luxeon 1AAA light called the Pacific- no doubt it will be very nice (and bright), and perhaps a 2AAA version will come down the pike as well.
Just out of curiousity, why is your Arc AAA failing? If you explain the problem, I'm sure other CPF'ers (or Peter Gransee himself) could offer solutions or potentially even a replacement. Peter stands by his lights.