Before you read this, you should try out what I have currently. Download the full game (made with Blender Game Engine) here, then open levels/level2.blend in Blender and press P over the 3D view (actual release will be a lot simpler).
I've been working on the melee combat system. It's a real time ARPG-style system like Skyrim (obviously with drastically less polish). Most of the code is done, but I cannot seem to get the feel right. By game feel, I'm talking things like Game Feel and this talk (fantastic, by the way). There is very little material available that talks about good feel for combat systems like this. If only a Skyrim dev would let some of their feel secrets be known!
Currently, the combat feels very floaty. The knockback was something I've thought about a lot, but knockback in combat systems varies quite a bit. It's currently a little too exaggerated.
It would help me out a lot if you would try out my game and tell me what you think. I've considered adding screen shake, a slight 10ms pause when you hit the enemy or get hit, improving enemy animations by having drawbacks (don't know what to call those - what I mean is things like raising the sword before slashing/hints that a hit is going to come soon), and sound (actually adds a lot to feel).
If I can get the combat system feeling solid, I think the game will be drastically more engaging and fun. Like the Halo devs say, get ~30 seconds of fun and repeat that over and over again in slightly different ways.