It has potential, but I couldn't get used to the combat at all. I'm used to playing mount and blade, where your attack direction is determined by your cursor position relative to closest enemy, which is pretty reliable. Penumbra overture had similiar system, where you held your mouse button and dragged it into one direction to charge a hit. Releasing the mouse button makes you attack.
The system you have right now didn't really work for me. Half the time my mouse movement was too slow or I pressed the mouse button at the wrong time. I had to lower the attack look input to pretty much zero to make it bearable and even then half of my imputs didn't register properly.
But again, this might be just me not being used to combat system like this.
While everything is obviously unfinished, I like the feel of it. I like ultima underworld and I remember enjoying arx fatalis long time ago, so I'm always down for more games like that.