Well story is a subjective matter, and I actually might even agree that KH1 had a better story (the Organization 13 stuff feels a bit contrived at times). The objective things, like graphics, camera, battle mechanics, features, worlds, customization options, etc are all heavily in favor of KH2, which is of no fault to KH1, they just had several years to polish the
really rough parts of KH1.
But yeah, I wouldn't nominate either of these games for GOAT anyway. A game needs to be a flawless experience, where every single aspect is just mind-blowing. Gameplay, music, and graphics all have to come together in an effortless amalgamation of beauty.
And that's why my nomination for greatest game of all-time is now, always has been, and always will be: