I personally don't like the idea of specific body parts being damaged and needing repair. I think doing so would give the devs the option of either being able to heal it easily with existing healing items, which invalidates the system. Other side of the coin is that repairs either take a lot of time or a lot of resources, which would just be frustrating.
I think the current combat system works fine, and if they wanted to spruce it up a bit they could:
Add proper knock-back
make enemy attacks easier to predict, but impose more damage should they hit
A parry system, a successful parry could temporarily stun the attacking monster. This ties in with predictable enemy attacks.
Make attacking less of a spamfest by introducing a low damage, quick thrust and a charged swing attack.
These changes would add more excitement and creativity to enemy encounters, where players would have to use skill and wit to beat enemies. (I just hope to god they dont give enemies the ability to parry too)