Yes i actually played MO for a while and i feel Darkfall would be a much better fit for a TES mmo with TES world/Lore/Rules and Laws, though i will agree i would like to see MO combat in a TES game, the world though was small and mostly bland.
Yeah it, was, they are a very under-funded company with a tiny dev team. However with the resources Zenimax has at its disposal, they could pull it off amazingly. I love Darkfall too, but the combat is a little too cartoony and arcadey for me, but that's a REAL nit-pick, I'd be happy either way, just as long as my actions WERE my characters actions, which is not the same as queuing attacks and waiting for cool-downs. Also, Darkfall is a perfect example of how you can have hotbar'd cooldown abilities WITH real-time combat. The biggest flaw for me with DF is the +4)% damage to the back feature that turns melee fights into figure-eight, sticky-back cluster-fraks.
Is there directional attacking and blocking in this game? I've never heard of it.
Yes. And mounted combat of all kinds (melee, archery and even magic).