The combat system really doesn't bring anything to the table; it really makes me wonder why there even is one.
Because there's conflict in the game. There's got to be
something, even a placeholder (which the current system most definitely started as).
I personally think that Inno would be well-served to question whether her choice of the "Captain Planet" elements is really the best way to go. For instance, if all weapons do damage to the target's aura, then why do you need forceful, flaming, freezing and poisoned weapons? The target isn't actually being cut, burned, frozen or poisoned. Just have weapon damage.
This division isn't even appropriate for magic. To belabor a point, if your "Fireball" damages your opponent's aura and doesn't actually burn them, in what sense is it even a Fireball? Have magic that actually fits with the whole non-lethal combat thing. Enchantments, illusions, transformations (imagine the Flash spell reflavoured as the caster temporarily transforming away their opponent's eyes), summoning, curses.
And of course, the outcast of the combat system: lust damage. The simple fact that a lust-damage based combatant is best served concentrating on magic (ie. the magic lust attack is better than the lust lust attack) should be enough to show how broken it is.
This is why I am so pissed off when Inno devotes time to tinkering with combat or magic. The whole thing's going to have to be overhauled anyway. Just get the main story in place with the current placeholder system, work out the final confrontation, then work out combat and magic and Perks and balancing then.