They had the right idea with the combat, i like the fact experience was allocated depending on how you approached a particular situation. If i use my arrow then yellow orbs would drop from downed enemies, red for using melee and blue for magic. You could use the orbs as currency to spend on special attributes. Id rather control my growth then the computer randomly calculate what it percieves to think what skills im elegible for.
But yeah, they need to sort out the kentic movement and hit detection of swinging weapons. After watching House of Flying Daggers i was filled with ideas for what the next Fable can achieve. Jumping from tree to tree in the woods, stalking enemies would be so much fun