Well, I thin.k it's an excellent combat system (especially with all the improvements introduced in AC).
It's reasonably challenging, fun, quick and responsive; abusing the "overpowered defense" is actually the slowest and least effective way to fight, the "forced variety" in enemies' patterns (and in the way to exploit their weakness) is a great thing for a brawler and I have no idea what should make perceive it as a flaw, it has what's probably one of the most seamless, impressive systems of contextual animations I've experienced in any game and all this while keeping a (vague) resemblance to a real world brawl, instead of relying in bullshit hyper-kinetic super moves and weapons, with flames, explosions and trails.
That said, I really can't see a system like this fitting a game about a lone ranger in a dangerous land.
It may sound an overdone* request at this point, but if they were actually looking for inspiration in other games, then the Souls series was probably going to be a better pick.
*which, on a side note, is completely fine, as no matter how overdone the request may be, there isn't a single game developer yet who seems willing to catch the hint.
I really don't think the Batman combat would be suitable for a LOTR game. They should try some kind of Demon's Souls/Dragon's Dogma hybrid.