Pretty much all of the unarmed combat systems I've seen are the same as the games usual combat system, just with bare hands. Would be interesting to take a look at any muds that have a better system to take care of this though.
For the other things, fits the critera. Classless and leveless, learn by doing, rp centered and low fantasy theme. It has a pretty nice combat system also, though again, the only real difference with unarmed combat is the fists are the weapons, and the skill used has a different name.
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