Are the bearings in the formulas bad?

If they are new, you probably won't notice any difference with nicer bearings (with the exception possibly of ceramics). My phil feels a lot like most new formulas I've spun.

As for the radial/cross debate, some people feel that radial lacing is more aerodynamic than cross. It also creates a wheel that has different stiffness properties. For the details, Get Jobst Brant's "The bicycle wheel". It's an overall good read.