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As an example of what I mean, unless you controlled a pointer of some sort (basically the mouse pointer) with the analog stick, which is likely to be super slow and hard to use, it would be tough to have targeted skills (like teleport or meteor in Diablo 2).

The gameplay video they already released has examples of these skills. The withdoctor had a fire bomb skill, the barbarian the leap skill. Both of those require indicating the destination of the action and thats just not possible without some sort of pointer.