I think action combat going forward is the logical choice. The MMO faux style combat just needs to go. They've taken it as far as it can go and I've had my fill of it. People just don't like it. I'm tired of the series not gaining a footing with more gamers cause they hate the combat.
Nobody is doing that MMO style because 1.) It's dated, and 2.) Its not compatible with a wider audience. It's not "unique" either, it's a system lifted straight out of MMOs.
I don't *hate* the Xenoblade combat, but I also wouldn't miss it. It's not the sole reason I play Xenoblade. There's so much more to these games than just it's combat. Most of the mechanics can be translated into an action battle system anyway.