Is there a way to see which way the mob is attacking you without reading the combat log? If the key to winning the fight is to defend in the direction that you are being attacked, there should be a quick way to visually see which way the mob is attacking you (before you get hit)
How can you tell whether a special move landed? Is there a way to see the effect of the special move landing successfully without looking at the combat log?
Overall, I will agree with most of the comments so far. I personally don't see how any of the changes made in this update will improve the combat experience. I was not expecting that taking the text out of the combat log and pasting it in the game world was what was meant by making the combat more visual.
Unless I am missing something, it looks like reading the combat log will be more important after the update to keep an eye on where the mob is attacking you and where it is defending. Aside from that, it feels that combat will be unchanged. Special moves do not seem effective and its still just better to let your swings do the damage. The mobs die to your regular attacks so fast that special moves do not seem worth the time to do.
If I could offer a suggestion for the next major update it would be spend more time at the drawing board before committing to any changes. Come up with more ideas on how to improve the system you are working on and how it fits into the bigger picture of the game. Spend time to ensure that the changes are addressing the current flaws and player complaints. This update does not address any of the current issues with combat and after such a long wait, we will be left with a system that is no better than the old one.