I've played and old demo it was really cool , and good graphics.
Your character models looks very good.
The good thing with that style of game : caus of distant camera ,
you don't need to bring as incredible amount of detail as for example
Oblivion characters on textures and models , so it saves lot fo time
to do other things and concentrate on gameplay, levels : )
What have happened to vain RPG ? it was also very good , that's sad
caus it had all necessary things and running: dialog, combat, customization
wearing etc ... ?
I hope to see a future demo of a complete level.
I'm sure you can make something commercial , even if not quality of Never winter nights 2 , with your own system , originality in levels etc ...
and story , atmosphear it would make the difference
I have begun a tile 3D system on 3DGS like in Dungeon siege game,
only near tiles are displayed with their objects like trees, grass etc ...
It's the way to go to create very quickly levels.
I always found your game very cool and good.
Keep improving, growing it up.