I read this game has dated graphics and bad textures. You guys say it looks good. This makes me wonder if I should try the game. I don't really know why you have to pick a part of the enemy to shoot at though. That seems kinda strange.
If you have any experience with Bethesda and Fallout 3, TES games...even toss in FO NV re: your question about the VATS system, it is just like that.
Also, bad graphics and dated textures doesn't necessarily mean something doesn't look good.
These aren't bad graphics, just non-optimized on an old and problematic engine.
But it sounds like you aren't familiar with the FO games and Bethesda style "rush a nice husk of a game out and let the community fix it over the next year" design model. My advice is to wait many months and get it on a discount and after significant community patching and visual improvements.
To clarify why VATS exists in this game: FO (1&2) started out as a brilliant isometric turn-based strategy game in an open-ended, RPG heavy world. One of the best 2 games ever made in that classic era of PC gaming. Building your character for combat meant tuning for number of actions (moves per turn) and hit/crit % to better optimize each one of those turns during combat. Exploration was free, but the current map you are in would switch to a turn-based action point system whenever aggressive critters would appear. When Bethesda put out FO3 and turned it into this first-person world (what a poop idea), they tried to retain this VATS system, which is completely optional, as sort of a nod to the game's origins. You simply push a button during combat, and only if you want to, that slows down the world and brings up target points on each enemy with hit % per each enemy in the field. It is only in VATS where things like "Action Points" still matter in the FO games--basically how many shots you can fire per VATS targeting. So, a skill that you can points into and waste if you ignore that system entirely. It's still good to use if you outright suck at free targeting, and would have been better realized in these games if ammo was a truly scarce resource--thus encouraging you to exploit the system to make every shot count. It is useful early on, but soon enough ammo just becomes plentiful in these games and the skill system makes it nearly impossible to miss, let alone not crit.