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So glad they dumped the turn based stuff! I've played through both I/II (prefer I) and it has some of these features. If I recall correctly the movement is somewhat grid based (but enables the player to move in more than 4 [8?] directions).

Original Diablo was originally going to be turn based, but that design was scrapped later, replaced by the more action-oriented stuff. :)

Baldur's Gate got it right. Best game since the Ultima Series IMO (well along with Bard's Tale, Wizardry, etc).

I read somewhere else about the move from turn based. If I recall correctly (sorry, no citation), the game was feeling a bit static, pretty much as you described. Somebody built a prototype live mode and that was when the game started feeling good.