HT and Pyro hinted that while they do NOT want to get to the level of a First Person Shooter, they do want to rework the entire ground combat system. They said the current system is built on the same foundation as the air combat system, which means that there are a host of compromises that end up limiting further development and immersion. (Can you say "bounce off the indestructable tree"?)
I understood the character animation system to be a part of making the ground aspects more realistic and immersive -- and Pyro called the current appearance "cardboard"