It's interesting from a programming perspective. I've not played the game, I don't know if it's good or not. I think though that such a technique can be good if used correctly.
Most of the models that I see kicking around here aren't made that well. Lots of models are too big. In Geisha House I've animated everything myself. My NPCs average 1200 polygons and 300 kb in size with 18 animations. My main character is 2500 polys with 20 animations and is 1.2mb. I adopted my modeling ethic from Psionic, who is the best indie modeler there is. My 2500 poly model vastly outperforms Dark Matter 2 models, which are around 1000 to 1200 polygons and are about 6 mb in size.
One thing that a lot of people don't understand when modeling is that DX automatically interpolates between frames. An animation that is 20 frames in length will be just as smooth as one that is 200 frames under a fixed framerate and proper timer based animation. Too many frames kills many models, rapidly inflating the model's size.
Come see the WIP!