Yes, absolutely, on both counts!In 20+ years of gaming, I've never seen a game that ties character background and motivation so concretely to the character's abilities in the game. It's absolutely brilliant and quite possibly my favorite RPG ever. I heartily encourage you to give it a look.
I've had little luck getting D&D players to try Wraith, partially for the perception that their character has already "lost" on the basis of being dead to begin with. I don't understand that, but I've heard it several times. Many people also don't enjoy actually designing characters (from a narrative standpoint, that is), asking people to describe a character's emotional complexities usually elicits blank stares or derisive statements about "artsy" games.
The game's premise is brilliant. Alas, I've never met enough players who were interested in giving it a try.
At least I got to play Ars Magica for a while - another one of my favorites, though for slightly different reasons (Mythic Europe, troupe-style play, seasons, and the Convenant as the central character ...).
Myself, I'm happiest if I can alternate between combat-heavy games like D&D and games focusing more on everything else. Taken together this satisfies my craving. If I only get one but not the other for a longer period I'm getting discontent.
Regarding the OPs dilemma, I have to chime in with the majority of the posters. Your main problem will be that you need a group of players that want the same things out of the game that you do. Otherwise, you, they, or all of you will be unhappy about the game.