I think Pacino is really the saving grace of Michael's business side in GF II. The whole Roth-Pentangeli-Rosato brothers angle during my first couple of viewings came of rather dull(and confusing). It just seemed to lack spice and u're not really sure what the heck is going on. Pacino's magnetic presence is really the only thing that kept me interested through the whole thing. The story really picks up once he returns from Cuba though. That's when we get to see the downfall in Michael's character and the tragedy of his situation.
The flashbacks, of course, is the true genius of FFC. Everything just looks so picture perfect and Marlon Brando had created such an incredible character in GF I that it was hard to not be hooked into Young Vito's life. Plus the parallel shown between Vito and Michael's life. There's no doubt GF II wouldn't be considered the classic it is today w/o the flashbacks.