To me, this game was miles better than Oblivion. Certainly not as polished, but much more PLAYABLE. I, too, prefer a third person perspective in my hack and slash games and this one just "feels" right. The combat is action oriented. There are special moves that require a small recharge time, but if all you're doing is swinging you sword/axe/mace/whatever, you can do that till the cows come home.
Honestly, I think the developers would have been better off just giving the game a new title. The stigma of the first Two Worlds will probably turn a lot of people off. Hell, it did for me until a friend of mine sang its praises.