I played another game that had this a while ago, and it was functionally the same as that. They essentially used the DIKU model with the automated "basic" attacks turned off, and skills (with their own wait_states) added to replace them.
There's pluses and minuses to both. At the end of the day, I found that the balance system slowed the overall pace of combat quite a bit. That may be good or bed depending on how much combat you typically see while playing.
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