Mount and Blade has a combat system that uses a physics engine to calculate damage. In that if you hit someone at the start of your swing it's just a love tap. But if you hit them at the end of your swing while riding a horse at full speed you do massive damage.Generally, melee attacks happen in the area in front of the character. There is no hard "target". Attacks use various shapes such as: cones, rectangles, and spheres. You can optionally turn on or off a projected ground texture, if you want to visualize where your character is attacking.
I actually like this a lot more than simple FPS style targeting. If it's done like Dark Souls, where animations times, delays and all come into play--as well as range, "area" of swing and other considerations, it could make things very interesting. One of the biggest issues with games getting stale is that even in a "action" targeting game, what's best usually comes down to the numbers on the weapon vs a rock paper scissors number system vs armor or mobs (If there is even that). For example if you have a choice between a 300 damage 2.0 speed mace, and a 350 damage 2.0 speed sword; there is no question which is better, the sword is. (And rarely a game will say "Oh maces do X special effect so in this niche way they are better--and even then it often doesn't matter because you'll just take both and swap if you run into undead).
But in a game where things like length of the attack, animation "wind up" speed, "area of attack" all come into play; all the sudden the damage becomes asecondaryconsideration. This is especially true of equipment weight also affects things like dash cost and speed. Then, yes, the huge Halberd might do a ridiculous amount more "DPS" compared that rapier, but if it also makes you slow and vulnerable during a swing? It might only be useful conjoined with others who can support that kind of heavy hitter. If a long sword does more than a curved sword, but say the curved sword swings in a wider arc? It has a whole new dimension that might make it a superior weapon depending on a lot of variables.
Combined with an inventory system that presents real risk to taking "every weapon that might be useful" and it could be extremely interesting. Also, if they do have weight, combined with travel times, and maybe a supply system (Food/hunger ect, since they said they are adding survival aspects), then all those things can mix into making weapon selection an actual unique and interesting choice, rather than a "Moar DPS". Choosing a weapon that suits you and compliments a team is a lot more important when you can't just bring them all and swap between fights (Or during them). But on that note; I understand why MMO's have ditched weight, it can make things complex. But it's just one of those things that has the bad side effect of affecting other systems in a negative way.
My concern with taking this to an MMO scale is I don't have much confidence in a network engine handling it properly without latency. Set amounts of damage and targeted abilities are easy. Having AE with reasonably sized areas is fine for a player. Having a conal AE with a small area could be very frustrating.