Anyone else remember Die by the Sword?
Real time analog input for combat is a neat idea, but horrible if not executed right, and in this case, I think motion controllers may be the only way to do it right.
I'm excited by the idea of all the motions all being calculated real time, but input needs to be button combos for specific moves, just like every good fighting game ever. Otherwise it's just a bunch of waggle, really no better than the clickfest games we have now.
The rest of the world sounds amazing, I've been waiting for a persistent, open world, perma death RPG for quite a while. We just have to hope that they figure out the right balance between dynamic movement and playability.