I shouldn't only be critical I guess. Here is a rushed(I'm tired as hell) layout of what I think is most proper. Though I don't expect anyone to suddenly adopt it, I firmly believe it avoids all the pitfalls.
(Names don't matter as much as what games are in these groups.)
a) Genre 1: Wizardry-like games, Dragon Quest, Mother, Pokemon, Final Fantasy 1-10, The Last Remnant, Radiant Historia, Valkyrie Profile 1
These games have mainly strategy combat systems in nature(though you can get weird ones which have tacked on reflex tests like Valkyrie Profile 1 and the combos in TLR). What sets them apart is the complete removal, simplification, or trivialization of positioning and movement in combat. This is a big deal because in wargames(and then some RPGs), the origin of all strategy genres, precise position and movement are some of the most important elements. In Dragon Quest positioning in non-existent, in some Final Fantasys it is represented as battle ranks, and The Last Remnant is an extreme take on the idea where your relationship to your enemy is what you control(though positioning still matters for AoEs, it is not really in your control.)
"JRPGs". "Wizardry-like". I sort of want to give them a name based on what makes them different, something like Static (c)RPGs.
b) Genre 2: Baldur's Gate, Tactics Ogre, Icewind Dale, Temple of Elemental Evil, Final Fantasy Tactics, Disgaea, Dragon Age: Origins (they don't have to be isometric, that matters only a little)
SRPGs / WRPGs. Traditionally grid-based combat where movement and positioning is very important and you have a whole map to play with.
I think The Last Story might fall into here, as an extreme real-time example, but then again, I don't know if I understand the game enough. It might be 3.
c) Genre 3: Diablo, Torchlight, The Witcher 1(not 2), MMORPGs in the style of Everquest/FFXI/WoW, DotA games
These are what I would call action (C)RPGs(NOT Kingdom Hearts or Demon's Souls). Though they can be further separated between games where you click-click-click and auto-attack, I am going to keep it simple. When are not spamming the default melee attack you are likely manipulating a collection of powers based on cool-downs. At the highest level, the distinction between the genre's strategy origins and the action-nature of it should be really blurry. It seems like this is what you get when you strip away squad-members and focus on making playing one character more interesting.
d) I've never played a Tales game before, but as far as I can tell, they belong nowhere near the above three categories. At least not the classic ones. Also these seem to be action games, anyway.