I completely missed the few seconds of the game in the ID@xbox trailer, and only noticed it while watching it again later. The art style is gorgeous, they really should have given more exposition to that game !
The creator actually specifically said it wouldn't be like that:
Its a difficult act to balance as Ghost of a Tale is definitely not a AAA game. People expecting the scale of Skyrim or the action of Dark Souls are not going to find it. Instead theyll find a small game with elements of exploration, action, stealth, adventure, and I hope the charm and heart which I think so many bombastic AAA games lack nowadays.
This game really made me sit up when I saw it at the Xbox gamescon conference. It seems that it has already got the imagination of gamers going, and the dev had to start to roll back expectations. I would love to play a huge RPG/adventure game in this style.