Not exactly. When you beat the game you'll be able to replay with a new character starting over from level one. however, you will now already have all of the swords that you forged in your first game. This is how you get the ability to forge the swords that require prerequisite swords from first characters. So, you won't start over with all of your previous abilities and life and equipment, but you will have a much nicer selection of swords (though you won't be able to use them for a while).
Additionally, there is an even harder difficulty setting that is unlocked. I forget the exact name, but it is exceedingly difficult. The game-play is basically that of Shura (hard) except that you never level up and you have a single hit point. What this means is that if you get hit, even once, you die. It's certainly a very compelling challenge, but probably not what you're looking for (I could barely even beat the first boss).