The way the Goblins set up their trap for Graham in the canyon. The camera is positioned so that the Goblins aren't seen until after Graham passes them by, and suddenly you see the rocks moving...
The battle against the Goblins after that.
The Bravery choice in the prologue against the Dragon in the Well. If you're aware of the Foreshadowing from previous playthroughs, you can practically hear Graham thinking, ''This is for Achaka, you son of a bitch!''
Chapter 2:
The fact that the game plays with its Karma Meter system. The characters who exemplify each of the three ways are in situations where their favorite way doesn't work, and find themselves forced to try the other ways.
For instance, Wente (who favors compassion) first tries to be kind and give cakes to his captors (compassion/kindness). When it fails, he decides to give them more cakes... POISONED ones (wisdom/intelligence). And when THAT fails, he snaps and just clobbers them with rocks, knocking them out (courage/strength).
The climax for many reasons, especially the fact that it pushes the parallels between young!Graham and Gwendolyn to their highest and best level.
Chapter 3:
The entire sequence of Graham climbing Hagatha's castle to save the princesses while it's being engulfed in ice. The actual climb is tricky, but the cutscene is worth it.
Chapter 4:
The introduction to Manannan shows that he means business.
While it ends up being for nothing, Mannanan's entry into the castle is blocked by Kyle and Larry. While two of the guards are incapacitated and one flees, they both unsheathe their dual swords and face off against the wizard. When he demands they stand aside?
Kyle: Never!
Larry: Not EVER!
This goes even further when the pair "lock in" (Larry holds on tight to Kyle by wrapping his legs about him) and the pair make an acrobatic spin through the air with their four swords swinging at the intruder. Unfortunately, Manannan's finger snap is faster and it makes Larry's death all the more tragic - he died beside his friend and never abandoned his king.
The newly reunited royal family working together to solve the labyrinth. You can really see how much they all care about each other, and they each get to show off their respective strengths.
Graham using magic for the first time through sheer willpower to escape Icebella's prison and save Alexander.
Chapter 5:
Graham saving the kingdom by blocking the castle from the destructive potion, taking it on himself with the understanding he'll someday die, but his kingdom and family will live. Mannannan himself looks like he cannot believe this.
Mordack turning on Manny, destroying the crystal empowering him and destroying the wizard forever.
Epilogue:
Doubles as a Heartwarming Moment. After the credits of the epilogue, Gwendolyn is shown standing triumphantly on a cliff facing the sunset (or sunrise?) holding up Taskia's bow as if she's telling Graham that she finished her first adventure.
