It's not a terribly original story, but this is being put together by about 5 people, less if you count the people who are actually working on the game. But that's not what's important. What's important is the combat, physics and animation model.
No word on dismemberment, as far as I can tell, but that would be the proverbial cherry on top, I agree. The movement of the characters looks a bit awkward at times, no doubt down to it being kinda dynamically generated a la euphoria engine, but I'm hoping that's something that a nice cash injection can minimize. Even if it doesn't, I'll gladly put up with that for the chance of swinging swords, flails and maces with what looks like 100% hit detection. Just imagine going up against a gigantic troll and being forced to dodge a flail of Sauron's proportions with a small and limber character.