I didn't think the combat was that awful. I've seen better, but really, how many first person brawlers are out there? There's not much to compare it to. It's not like it took forever to take out guards, either. Ten seconds, more or less, and you could take down a guard, especially if you led in with a jump kick or slide.
I hope they make a sequel. I really enjoyed ME, and agree that it was one of the most innovative games I've played in years. Yes, it had its low points, but NO ONE has ever tried this before, so you didn't have much of a reference. I'd like to see the next game have more sections where what to do was more intuitive, so you could get into the "Runner's Flow" they talked about in the game, rather than the stop/start what do I do next kind of thing.
They could smooth out a lot of the rough spots in the sequel, and I hope they get the chance. Stylistically and substantially, this was one of my favorite games to come out in the last year.