Seems interesting. Although, it does remind me a lot of the system implemented in the Grandia series on the consoles. If you have a few bucks to spare and a PS2, I would recommend you look at Grandia 2 or 3 (not Xtreme), but I wouldn't say it's a requirement.
My one major complaint is that I think that you should change the option icons to plain text. I understand that you explained what the icons do on the webpage, but if you are planning to add more icons as you develop the game further (such as for individual spells and whatnot) then it can get quite confusing as the game progresses.
My smaller complaint is that I didn't like having to move my mouse back and forth between the options and the targeted area/enemy on the battlefield, but I don't really have any suggestions for that for the time being.
Overall, I liked it. I died like no tomorrow, but I liked the concept.