I wouldn't say MW's combat system is great but it's not bad either. You have 3 attacks per weapon, each weapon has an attack mode that works best for it. You can be knocked down and knocked out (and you can do the same to enemies). You can shield block though that happens automatically. You can run out of "fatigue" (stamina).
Magic combat is pretty remedial, though. And incoming projectiles/spells can block your spells. For example an incoming el cheap iron arrow can stop my fireball dead. Lame.
Monster AI is a bit below average. Sometimes you see enemies back off (usually archers and mages) but otherwise it's your basic Doom AI. The taunting is well implemented though and adds to the battle atmosphere.
All I wanted and expected from MW's combat was an improvement over Ultima 9s. And so it succeeded. You results may differ.